Question

According to your text, the best means of using direct foreign investment to attract new sources of demand is probably to

Answer 1

Answer:

c. establish a subsidiary or acquire a competitor in a new market.

Explanation:

A foreign direct investment can be referred to as investment made by a firm in one country into business interests located in another country. Foreign direct investments can be made through the establishing a subsidiary or associate company in a foreign country, acquiring a controlling interest in an existing foreign company, or a merger or joint venture with a foreign company.

Option C is therefore correct as establishing a subsidiary or acquire a competitor in a new market to attract new sources of demand is a means of foreign direct investment.