Which of the following characteristics distinguishes foreign direct investment from other forms of investment? (1 point)

A) Foreign direct investment involves the exchange of foreign assets for domestic assets
B) Foreign direct investment involves the transfer of domestic capital to foreign countries
C) Foreign direct investment involves significant control in a foreign business
D) Foreign direct investment involves domestic ownership of foreign assets

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cheescake cheescake

03-05-2022
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Which of the following characteristics distinguishes foreign direct investment from other forms of investment? (1 point)

A) Foreign direct investment involves the exchange of foreign assets for domestic assets
B) Foreign direct investment involves the transfer of domestic capital to foreign countries
C) Foreign direct investment involves significant control in a foreign business
D) Foreign direct investment involves domestic ownership of foreign assets

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marvineetesh3 marvineetesh3 · Answer 1 · 2022-05-16T11:47:01+02:00

The characteristics that distinguishes foreign direct investment from other forms of investment is that the Foreign direct investment involves significant control in a foreign business.

What is Foreign direct investment?

A foreign direct investment (FDI) is the purchase of a company's stock by a corporation or investor based outside the country. In a foreign corporation, foreign direct investment entails significant control.

In general, the word refers to a commercial decision to buy a significant stake in or buy a foreign company completely in order to expand its activities to a new territory.

Therefore, option C is correct.

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