n NISM Certifications
XV NISM Series XV
Medium

When a foreign firm establishes new operations in another country, it is called ______.

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Foreign Portfolio Investment

  2. B

    Foreign Aid

  3. Foreign Direct Investment

    Correct answer

  4. D

    Foreign Institutional Investment

Why this is the answer

FDI involves long-term investment with management control, such as setting up factories or offices abroad.

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