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Question
Which of the following characteristics distinguishes foreign direct investment from other forms of investment?(1 point)
Responses
Foreign direct investment involves the exchange of foreign assets for domestic assets.
Foreign direct investment involves the exchange of foreign assets for domestic assets.
Foreign direct investment involves significant control in a foreign business.
Foreign direct investment involves significant control in a foreign business.
Foreign direct investment involves the transfer of domestic capital to foreign countries.
Foreign direct investment involves the transfer of domestic capital to foreign countries.
Foreign direct investment involves domestic ownership of foreign assets.
Foreign direct investment involves domestic ownership of foreign assets.
1 answer
The characteristic that distinguishes foreign direct investment (FDI) from other forms of investment is:
Foreign direct investment involves significant control in a foreign business.
This means that through FDI, investors obtain a degree of control or influence over the foreign business operations, often by acquiring a substantial share or establishing a new business entity in the foreign country.
