An American clothing manufacturer has recently purchased a clothing factory in Taiwan. This action is known as ________.

Business

1 answer:

rodikova [14]2 years ago

6 0

Answer: Foreign Direct Investment / Direct Investing

Explanation:

When a foreign company buys a domestic company with the intent of owing it and managing it actively, the foreign company is said to have directly invested in the domestic country.

This is what the American clothing company has done so this qualifies as a direct investment into Taiwan. If the American company had simply purchased shares in a company in Taiwan, this would be a Foreign portfolio investment.

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