For foreign direct investment (FDI) to occur, a firm should primarily:

QUESTION

For foreign direct investment (FDI) to occur, a firm should primarily:

A. conduct cross-border bartering with neighboring countries.

B. invest resources in business activities outside its home country.

C. export goods or services to consumers in another country.

D. import goods or services from producers in another country.

E. erect formidable barriers to international trade.

ANSWER

B
Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.