Question

Jimland's government has severe restrictions toward the entry of foreign companies into the country. a foreign company interested in jimland would have to purchase an existing company in order to conduct its business there. hence, companies can only enter jimland through a _____.

Answer 1

Jimland's government has severe restrictions toward the entry of foreign companies into the country. a foreign company interested in jimland would have to purchase an existing company in order to conduct its business there. hence, companies can only enter jimland through a foreign direct investment. An FDI or a foreign direct investment is an investment that is made by someone or a business to control how the business is ran in another country. This is a foreign investment with direct control over the business.

Answer 2

Companies can only enter Jimland through a direct foreign investment. This is an investment that is made by an organization, company or an individual in a country in terms with the business interest of another country. This is suitable on the situation above.