Question

Which is not the form of foreign direct investment?

Answer 1

Answer:

exporting

Explanation:

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Answer 2

Complete question:

Which of following is not a type of direct foreign investment?

A. Franchising

B. International trade

C. Joint ventures

D. Acquisitions of existing operations

Answer:

B. International trade is not a type of direct foreign investment.

Explanation for the answer:

• FDI or Foreign Direct Investment refers to controlling stake or ownership in a commercial enterprise which is located in a country by an entity which is based out of another country.
• International trade is not a type of direct foreign investment.
• International Trade is the exchange of products and services from one country to another.
• In simple words, it just involves imports and exports.
• Hence, the correct answer among all the options is option B. International trade.

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