Question

What is the primary purpose of foreign direct investment?

A.
To discourage trade

B.
To build infrastructure

C.
To encourage an international money system

D.
To purchase luxury items

Answer 1

To encourage an international money system

Step-by-step explanation:

Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold securities from a foreign country.