Asked by Vaden Mangler on May 27, 2024
Verified
If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in
A) foreign portfolio investment.
B) foreign financial investment.
C) foreign direct investment.
D) indirect foreign investment.
Foreign Direct Investment
A company or individual from one country deploying capital into business ventures or assets in another country, whether by setting up operations or purchasing business properties.
- Appraise the value of international trade and investment in fostering economic expansion.
Verified Answer
DM
Despina MarinaMay 28, 2024
Final Answer :
C
Explanation :
When an American-based firm opens and operates a new clothing factory in Honduras, it is engaging in foreign direct investment (FDI). This is because FDI involves a company directly investing in facilities to produce or market a product in a foreign country, which is exactly what is described.
Learning Objectives
- Appraise the value of international trade and investment in fostering economic expansion.