Investing in businesses located in another country is known as?

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Multiple Choice

Investing in businesses located in another country is known as?

Explanation:
Foreign direct investment is investing in businesses located in another country with a lasting interest and some degree of control over the management. This usually means owning a substantial share (often 10% or more) or establishing a subsidiary, factory, or joint venture abroad. The emphasis is on long‑term involvement and influence in the foreign company, not just passive ownership or trading. FDI can take the form of greenfield investments—building new operations abroad from the ground up—or cross-border mergers and acquisitions, where a foreign investor buys into or takes over a local firm. The motives include accessing new markets, achieving lower costs, securing resources, or obtaining strategic assets. This differs from globalization as a broad process of deeper integration worldwide, and from terms like the EU or Energy Route, which refer to regional structures or infrastructure rather than the act of investing in a foreign business.

Foreign direct investment is investing in businesses located in another country with a lasting interest and some degree of control over the management. This usually means owning a substantial share (often 10% or more) or establishing a subsidiary, factory, or joint venture abroad. The emphasis is on long‑term involvement and influence in the foreign company, not just passive ownership or trading.

FDI can take the form of greenfield investments—building new operations abroad from the ground up—or cross-border mergers and acquisitions, where a foreign investor buys into or takes over a local firm. The motives include accessing new markets, achieving lower costs, securing resources, or obtaining strategic assets.

This differs from globalization as a broad process of deeper integration worldwide, and from terms like the EU or Energy Route, which refer to regional structures or infrastructure rather than the act of investing in a foreign business.

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