Question

Select the proper option from the options given below and rewrite the sentences.

When a company directly invests in properties such as plant and machinery in foreign countries, ________ takes place

(a) Portfolio investment
(b) Indirect Exporting
(c) Direct Investment

Answer 1

When a company directly invests in properties such as plant and machinery in foreign countries, direct investment takes place.

Explanation:
When a company directly invests in properties such as plant and machinery in foreign countries, it is regarded as direct investment or foreign direct investment (FDI). The motive behind this investment is to undertake production and marketing of goods and services in the foreign country.
The correct option is C.