Question

A firms direct investment in international business involves building a new plant or buying an existing plant in foreign country to produce its own products or it may involve buying an existing form in a foreign country T/F

Answer 1

true

Step-by-step explanation:

Foreign direct investment (FDI) takes place when a firm directly invests in an international business either by building a new plant or by acquiring an existing business in a foreign country.

When the firm decides to open a subsidiary in a foreign country from scratch, it is called greenfield investing.

The purpose of FDI is to expand operations abroad but at the same time remain in control of the operations.