IBT (Lesson 4- 5)

two main categories of international investment

refers to the investment in a company’s stocks, bonds, or assets, but not for the purpose of controlling or directing the firm’s operations or management.

refers to an investment in or the acquisition of foreign assets with the intent to control and manage them.

A country’s FDI can be both inward and outward.

refers to investments coming into the country

are investments made by companies from that country into foreign companies in other countries.

The difference between inward and outward is called the _____, which can be either positive or negative.

Cost is one of the factors that influences a company's decision to invest

• True

• False

two forms of FDI

occurs when a company is trying to open up a new market