Question

When Honda, a Japanese auto maker, built a factory in Ohio,

A) it was engaged in foreign direct investment.
B) it was engaged in portfolio investment.
C) it was engaged in a cross-border acquisition.
D) none of the above.

Answer 1

A) it was engaged in foreign direct investment.

Step-by-step explanation:

Foreign Direct Investment is a term used in business-related operations that describes a kind of investment made by an investor in a country other than the actual or original country of the investor. It can be either business operations or business assets in a different firm in another country.

Hence, in this case, when a Japanese automaker, built a factory in Ohio, it was engaged in foreign direct investment. Therefore, the correct answer is option A.