Asked by
Katherine Reza Jaimes
on Nov 16, 2024
Verified
When a company from Germany builds an automobile factory in the United States, the German firm has engaged in foreign direct investment.
Foreign Direct Investment
Investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.
Automobile Factory
A manufacturing facility dedicated to producing automobiles, encompassing assembly lines and machinery specific to vehicle production.
- Distinguish between foreign direct investment and foreign portfolio investment.
Verified Answer
JN
Learning Objectives
- Distinguish between foreign direct investment and foreign portfolio investment.