Building of new factories in particular nation by corporations of other nations ?
Correct answer: A. Direct foreign investment
- A. Direct foreign investment
- B. Discrimination
- C. Profit maximization rule
- D. Economies of scale
Explanation
Direct foreign investment occurs when firms from one country establish or acquire productive facilities, such as factories, in another country. It differs from merely buying foreign shares or goods because it involves control or a lasting interest in production.
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