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Management · Q137

Strategic Management

Graduate and Post Graduate · Management · question 137

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
Answer
C.
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.