GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investor purchases large part of a company; has direct control of company
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investor purchases part of a company through stocks; no real control of company
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when a company sells goods and services at a lower price than its competitors and still gains larger profits
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when a business creates the efficient production of a specific product or service
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business which operates internationally
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Detailed explanation-1: -Direct investment provides capital funding in exchange for an equity interest without the purchase of regular shares of a company’s stock. Direct investment may involve a company in one country opening its own business operations in another country.
Detailed explanation-2: -Levi Strauss & Co., which has its headquarters in the United States and is best known as the maker of the iconic Levi’s brand of denim jeans, is a great example of direct investment. It does business abroad and operates through multiple local wholesale entities in foreign countries.
Detailed explanation-3: -Foreign direct investment (FDI) is investment into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
Detailed explanation-4: -Horizontal Direct Investment. Horizontal DI is the most prevalent kind of FDI, which typically involves investing funds in a foreign firm operating in the same industry as the FDI investor’s company. Vertical Direct Investment. Conglomerate Direct Investment. Platform Direct Investment. 23-Jan-2023