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QUESTION IMAGE

direct foreign investment can occur through which of the following? gra…

Question

direct foreign investment can occur through which of the following?
granting permission to a foreign company to use your trademark, patent, or process
sharing the risks, costs, and management of the foreign operation with one or more partners
acquisition of a foreign company or building an international division
assigning production of goods and services to a foreign company

Explanation:

Brief Explanations

Direct foreign investment involves a company taking a controlling - interest in a foreign business. Acquiring a foreign company or building an international division gives the investing company control over the foreign operation, which is a form of direct foreign investment. Granting permission to use trademarks etc. is licensing, sharing risks with partners is a joint - venture, and assigning production is outsourcing.

Answer:

Acquisition of a foreign company or building an international division