Question

All of the following are types of foreign direct investment (FDI) except _____.

A a foreign company merges with an existing firm in a less developed country (LDC)


B a foreign company takes over a firm in an LDC


C a foreign company enters into a partnership with a firm in an LDC


D a foreign company buys stock in a firm in an LDC and helps the company build a new plant

Answer 1

Answer: D.

Step-by-step explanation:

Answer 2

Answer: D.

A foreign direct investment or FDI generally acquires foreign business assets, in which they will establish ownership or has the controlling interest in a business/ company in a region or different country.

Therefore, when foreign company buys stock in a firm in an LDC and helps the company build a new plant, then this is not a type of foreign direct investment for buying a stock will not give you the authority to control the entire business.