FDI stands for

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Study for the IGCSE Economics CIE Section 2 on resource allocation. Practice with flashcards and multiple-choice questions, each with hints and explanations. Prepare for success!

Multiple Choice

FDI stands for

Explanation:
Foreign Direct Investment is investment by a firm or individual from one country into business activities in another country, with a lasting interest and a degree of influence or control—often seen when the investor owns a substantial share and can affect how the business is run. This distinguishes it from simply buying stocks in a foreign company, which doesn’t imply control. The other phrases don’t match the established term economists use for cross-border investment that involves control, so the standard meaning is that FDI stands for Foreign Direct Investment.

Foreign Direct Investment is investment by a firm or individual from one country into business activities in another country, with a lasting interest and a degree of influence or control—often seen when the investor owns a substantial share and can affect how the business is run. This distinguishes it from simply buying stocks in a foreign company, which doesn’t imply control. The other phrases don’t match the established term economists use for cross-border investment that involves control, so the standard meaning is that FDI stands for Foreign Direct Investment.

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