Economics · International Finance
Foreign Direct Investment (FDI) is best defined as:
- 1A short-term portfolio investment in foreign stocks
- 2A cross-border investment in which an investor establishes a lasting interest and control in a foreign enterprise✓
- 3An annual executive survey of foreign market trends
- 4A loan provided by international commercial banks to domestic companies
Correct answer
A cross-border investment in which an investor establishes a lasting interest and control in a foreign enterprise
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