Question

A foreign direct investment occurs when ________.

a company owns at least 25% of a foreign firm
foreign ownership is in private rather than government securities
a foreign firm agrees to a licensing agreement with a large conglomerate a company has a controlling interest in a foreign company

Answer 1

Answer: A company has a controlling interest in a foreign company

Step-by-step explanation: In simple words, when a company invest in a country other than which it is originated is called foreign direct investment. The parent company takes control of all the shares and the management of the invested entity. Thus, the control remains in the hands of the investing company.

Hence from the above we can conclude that the correct statement is D.