Q137
An investment that gives the investor a controlling interest in a foreign company is known as which of the following?
A.
foreign portfolio investment
B.
foreign direct investment
AnswerC.
mixed venture
D.
pure venture
Answer: Option B
Solution
Answer: Option B
Solution:
An investment that gives the investor a controlling interest in a foreign company is known as foreign direct investment. A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company.