| 1. By incorporating a wholly owned subsidiary or company anywhere |
| 2. By acquiring shares in an associated enterprise |
| 3. Through a merger or an acquisition of an unrelated enterprise |
| 4. Participating in an equity joint venture with another investor or enterprise |
A) 1 and 2
B) 2, 3 and 4
C) 1, 3 and 4
D) 1, 2, 3 and 4
Correct Answer: D
Solution :
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment.
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