Question

Which of the following is a general term that refers to capital that flows out of the home country as companies invest in​ plants, equipment, and other​ assets?

A.Joint ventures
B.Mergers and acquisitions
C.Greenfield investment
D.Foreign direct investment​ (FDI)
E.Equity stake

Answer 1

Foreign Direct Investment (FDI)

Step-by-step explanation:

The general term that refers to capital that flows out of the home country as companies invest in plants, equipment, and other assets is Foreign Direct Investment (FDI). FDI involves purchasing a firm (at least ten percent) in another country or starting up a new enterprise in a foreign country. For example, when the Belgian beer-brewing company InBev bought the U.S. beer-maker Anheuser-Busch, it was considered FDI.