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Questions and Answers
Which one of the following is the correct definition of foreign direct investment?
Which one of the following is the correct definition of foreign direct investment?
- The regulations and agreements of foreign countries.
- The exchange of goods, services, and capital across national borders.
- An investment made by a country or individual in one company in business interests in another country. (correct)
- An investment made open to economies, frequently involving more than just a capital investment.
Which one of the following is true about foreign direct investment?
Which one of the following is true about foreign direct investment?
- It can only be in the form of establishing business operations in another country.
- It is not open to economies other than the investing country.
- It can only be in the form of acquiring business assets in another country.
- It often involves more than just a capital investment, such as provision of management or technology. (correct)
Which one of the following methods can be used to establish foreign direct investment?
Which one of the following methods can be used to establish foreign direct investment?
- Exporting goods to another country.
- Signing a bilateral trade agreement.
- Merging with a domestic company. (correct)
- Importing goods from another country.
Which one of the following is false about South Africa and BRICS economies?
Which one of the following is false about South Africa and BRICS economies?
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Which one of the following is true about the General Agreement on Trade in Services (GATS)?
Which one of the following is true about the General Agreement on Trade in Services (GATS)?
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