IDNLearn.com provides a collaborative environment for finding accurate answers. Find the information you need quickly and easily with our comprehensive and accurate Q&A platform.
Sagot :
foreign direct investment
What is foreign direct investment?
- A corporation from nation A will invest in country B by starting their own commercial activities there or by buying a local company. This practice is known as foreign direct investment (FDI). The new company in country B must be controlled and managed by the investor from nation A in order to qualify for FDI.
- The investment could entail purchasing a material supply, growing a business's reach, or establishing a global presence.
- By 2020, the United States will trail China in terms of FDI attraction.
Why do companies engage in foreign direct investment?
- Avoid trade restrictions. National protectionism still appears occasionally despite the increased prevalence of free trade.
- Lower the cost of production. Companies increasingly use foreign direct investment to lower production costs.
Examples of Foreign Direct Investments
- Mergers, acquisitions, or joint ventures in the retail, service, logistics, or manufacturing sectors may be part of foreign direct investments. They point to a global business expansion plan.
learn more about characteristics of foreign direct investment at
https://brainly.com/question/27540611?referrer=searchResults
#SPJ4
We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com has the answers you need. Thank you for visiting, and we look forward to helping you again soon.