If an American-based firm opens and operates a factory in Greece then it is engaging in a. foreign direct investment. b. foreign financial investment. c. foreign portfolio investment. d. indirect foreign investment.

If an American-based firm opens and operates a factory in Greece then it is engaging in a. foreign direct investment. b. foreign financial investment. c. foreign portfolio investment. d. indirect foreign investment.

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June 24, 2020
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If an American-based firm opens and operates a factory in Greece then it is engaging in

  1. foreign direct investment.
  2. foreign financial investment.
  3. foreign portfolio investment.
  4. indirect foreign investment.
Answer and ExplanationSolution by a verified expert

If an American-based firm opens and operates a factory in Greece then it is engaging in

  1. foreign direct investment.
  2. foreign financial investment.
  3. foreign portfolio investment.
  4. indirect foreign investment.

Answer

  • foreign direct investment.

Explanation:

This is foreign direct investment that occurs when a company based in one country, controls the ownership of a business based in another country. This may involve purchasing an entity in another country or establishing a new entity in another country and controlling its ownership as it operates in its home country. For example, American-based from operating a factor in Greece

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