Question

Acquisitions of a foreign company, creation of new manufacturing or research facilities abroad, and expansion of an existing plant in a foreign country are all examples of _____.Question 2 options:a current balance account a balance of transfersforeign direct investments risk premium net financial derivatives.

Answer 1

Answer:

Foreign Direct Investment

Explanation:

In Foreign Direct Investment (FDI), an individual or a company invests in a foreign country with an open economy that offers skilled manpower and growth prospects that make the investment worthwhile. FDI does not only include capital investment only but brings in new technology into a country. In this scenario, a research facility means research technologies are being brought in, and the expansion of the existing plant shows the potential for growth.