androw3275 androw3275

17-03-2020
Business

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If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in a. indirect foreign investment. b. foreign portfolio investment. c. foreign financial investment. d. foreign direct investment.

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agustinsr99 agustinsr99

19-03-2020

Answer: The correct answer is "d. foreign direct investment.".

Explanation: It is engaging in foreign direct investment.

In the business sphere, direct foreign investment is when long-term capital is allocated in another country for the opening and operation of companies in this case of clothing factory with the purpose of becoming international.

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