In the context of foreign direct investment, a joint venture involves the merger of companies.

Question

Ferrell

Business

23 October, 05:28

In the context of foreign direct investment, a joint venture involves the merger of companies.

+2

Answers (1)

Know the Answer?

Gunnar Butler · Answer 1

Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.

Explanation:

In the context of foreign direct investment, a joint venture involves the merger of companies. FDI takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.

Foreign direct investments are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies.