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10 February, 17:13

Which of the following is true about foreign direct investment (FDI) ?

(A) It is less risky than franchising

(B) It is only done by public companies

(C) It is different than a Greenfield venture

(D) It involves ownership of foreign assets

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Answers (1)
  1. 10 February, 20:39
    0
    D.

    Explanation:

    Let's analize what is FDI. And why D is the correct answer.

    Foreign direct investment (FDI) is is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. So it involves ownership of foreign assets.

    Now why A B and C are false.

    C. Greenfield venture is a form of FDI.

    B. No, it can be done by private companies. Is the most common actually.

    A. The risk depends on the market, and other factors, but it can be generalized as less risky.
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Home » Business » Which of the following is true about foreign direct investment (FDI) ? (A) It is less risky than franchising (B) It is only done by public companies (C) It is different than a Greenfield venture (D) It involves ownership of foreign assets
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