Foreign Direct Investment

Which of following are examples of foreign direct investments?

• Mergers

• Acquisitions or partnership in retail

• Vertical FDI

• Service & Manufacturing

More expansion of foreign direct investment can boost:

• Unemployment

• Supply

• Employment

• Money circulation

Which of the following are  benefits of Foreign direct investments?

• Job creation

• Non- improved new technology 

• Helping countries with limited resources 

• No difference in  government policies

What is Foreign direct investment?

• This is when a country makes an investment into a company.

• This is when a company makes an investment into a foreign country and has the right to control.

• When a domestic country invest into its own companies.

• When a foreign individual invest in domestic stock markets

One reason direct investment may be prefered to portfolio is

• it fills the savings investment gap.

• it doesn't pose a threat to national sovereignty

• it doesn't create an outflow on primary income.

• it is more long term and stable.

One possible disadvantage of FDI is

• transfer pricing and tax avoidance.

• interest payments rising.

• the DSR rising.

• increased foreign ownership.

The developed markets are

• USA

• Germany.

• Singapore

• Japan

When firms invest in the same industry overseas as it operate back at home is called...

• Vertical FDI

• Horizontal FDI

How was the presentation?

Foreign Direct Investment or FDI occurs when a company from one country invests in another country as an effort to secure lasting interest in the other country's enterprises to produce and/market a product or service.

• True

• False