Benefits Of Globalization: Foreign Direct Investment

Question 1

A purchase of an interest in a company by a company or an investor located outside its borders (FDI)

Answer 1

Foreign direct investment

Question 2

Companies considering a ______________ generally look only at open economies that offer a skilled workforce and above average growth prospects for the investor

Answer 2

Foreign direct investors

Question 3

Accompany establishes the same type of business operation in a foreign country as it operates in its home country

Answer 3

Horizontal direct investment

Question 4

A business acquires aquimentary business in another country

Answer 4

Vertical investment

Question 5

A company invest in a foreign business unrelated to its core business

Answer 5

A conglomerate type of foreign direct investment

Question 6

The addition of international assets to accompany portfolio, an institutional investors such as a pension fund, or an individual investor

Answer 6

Foreign portfolio investment