Final answer:
Foreign direct investment (FDI) is a form of foreign direct investment where a company purchases a firm or starts up a new enterprise in another country. It involves supplying domestic currency and demanding foreign currency. An example of FDI is when InBev, a Belgian beer-brewing company, bought the U.S. beer-maker Anheuser-Busch.
Step-by-step explanation:
Foreign direct investment (FDI) is a form of foreign direct investment. It involves purchasing a firm (at least ten percent) in another country or starting up a new enterprise in a foreign country. Foreign direct investment (FDI) is a form of foreign direct investment where a company purchases a firm or starts up a new enterprise in another country.
It involves supplying domestic currency and demanding foreign currency. An example of FDI is when InBev, a Belgian beer-brewing company, bought the U.S. beer-maker Anheuser-Busch. For example, in 2008, the Belgian beer-brewing company InBev bought the U.S. beer-maker Anheuser-Busch.
This transaction required InBev to supply euros to the foreign exchange market and demand U.S. dollars. FDI is a common way for companies to expand their operations internationally.