Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply. A U. S. firm that owns a plant in Europe has to pay tariffs on the goods it sells there, just as it would if those goods were imported from the United States. FDI occurs when a firm in one country sells investment goods in another country. FDI is conducted in anticipation of future profits. FDI occurs when a firm in one country owns a firm in another country. FDI is a poor strategy of technology transfer.

Foreign Direct Investment (FDI) in this case can refer to an economic situation where one firm or company in one particular country own another in any foreign country with the objective to enhance company profitability. Hence, the correct answers here would be the third and the fourth options given in the answer choices.

Explanation:

FDI basically implies the expansion of the commercial and business operation by one firm or company based in one particular country in other foreign country/s. Therefore, it denotes a form of international business investment by any firm or company mainly in order to enhance market share and guarantee a long term economic profitability. There are various ways or strategies which can be used to expand offshore or international business operation or investment such as initiating a subsidiary or affiliate firm in a foreign country by the firm or company located in another country, acquisition of or merger with any foreign based company or firm, establishment of joint ventures with any foreign company or firm or gaining access of the voting stocks of any foreign company. Hence, absolute acquisition or ownership of any foreign company by any other company or firm located in another country is one of the strategic procedures of FDI. All these strategies or procedures of FDI is mainly intended to generate long term or sustainable economic profitability by expanding business investment and commercial operations in foreign countries.