Economics · Foreign Direct Investment (FDI)
Which of the following constitutes Foreign Direct Investment (FDI)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A company signing an agreement with a wholesaler to distribute its products in foreign markets
- 2A tourist purchasing foreign currency to spend on holiday in another country
- 3A US-based energy company buying territory abroad where it expects to find oil reserves✓
- 4A speculator trying to make a profit by buying company shares on a foreign stock exchange
Correct answer
A US-based energy company buying territory abroad where it expects to find oil reserves
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