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Over the past few years, more and more companies are investing in businesses in Scandinavia. These investments represent the _____ of FDI for the Scandinavian countries.

User MichaelR
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Final answer:

The investments from companies into Scandinavian businesses represent the inflow of FDI for the Scandinavian countries. FDI includes purchasing a significant stake in foreign companies or establishing new enterprises. Scandinavian countries attract FDI due to their rich natural resources and stable economies.

Step-by-step explanation:

Over the past few years, more and more companies investing in businesses in Scandinavia represents the inflow of Foreign Direct Investment (FDI) for the Scandinavian countries. FDI occurs when a company purchases at least ten percent of a firm in another country or starts a new enterprise there. An example of this is when the Belgian beer-brewing company InBev acquired the U.S. beer-maker Anheuser-Busch. Such transactions involve a currency exchange, where InBev had to supply euros to the foreign exchange market to obtain U.S. dollars.

Scandinavian countries have been an attractive destination for FDI partly due to their rich natural resources. For instance, Sweden has developed its manufacturing sector through its iron ore supply, Finland has utilized its timber resources, and Norway has gained wealth from its oil and natural gas reserves.

User Jedivader
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