Which of the following best exemplifies foreign direct investment (FDI

QUESTION

Which of the following best exemplifies foreign direct investment (FDI)?

A. Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, Philippines, and Australia.

B. Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.

C. Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout the globe.

D. Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Italy.

E. Yin and Yang Inc., a Chinese firm, supplies buttons and zippers to major denim brands in the United Kingdom.

ANSWER

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