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29 October, 14:30

A firms direct investment in international business involves building a new plant or buying an existing plant in foreign country to produce its own products or it may involve buying an existing form in a foreign country T/F

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  1. 29 October, 14:57
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    true

    Explanation:

    Foreign direct investment (FDI) takes place when a firm directly invests in an international business either by building a new plant or by acquiring an existing business in a foreign country.

    When the firm decides to open a subsidiary in a foreign country from scratch, it is called greenfield investing.

    The purpose of FDI is to expand operations abroad but at the same time remain in control of the operations.
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