Asked by Melody Ghorbani on May 10, 2024
Verified
Bantani Corporation, a large manufacturer of food packaging products, decides to purchase an existing manufacturing plant in India. This is an example of 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.
- Grasp the idea of foreign direct investment and how corporations establish or acquire business interests in foreign countries.
Verified Answer
EG
EmanE GabrielMay 11, 2024
Final Answer :
True
Explanation :
Foreign direct investment refers to the purchase of a controlling interest in a company or the establishment of an entirely new facility in a foreign country by a foreign firm. In this scenario, Bantani Corporation is purchasing an existing manufacturing plant in India, which is an example of foreign direct investment.
Learning Objectives
- Grasp the idea of foreign direct investment and how corporations establish or acquire business interests in foreign countries.
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