5ejvqvyhmk 5ejvqvyhmk

22-06-2024
Business

Answered

Select the correct answer.

Which financial activity helps a company based in another country?

A. foreign direct investment
B. market value
C. price floor
D. productivity

Answer :

GinnyAnswer GinnyAnswer

22-06-2024

Final answer:

Foreign direct investment (FDI) involves purchasing stakes in foreign firms or starting new ventures in different countries, exemplified by InBev's acquisition of Anheuser-Busch. Currency exchange markets are essential in facilitating FDI, showcasing the interconnectedness of financial activities globally.

Explanation:

Foreign direct investment (FDI) is a financial activity that helps a company based in another country. It involves purchasing a significant stake in a foreign firm or initiating a new business venture in a different country.

For example, InBev's acquisition of Anheuser-Busch in 2008 for $52 billion exemplifies FDI as the Belgian company entered the U.S. market by investing a substantial amount, demonstrating the impact of such cross-border investments on global economies.

Currency exchange markets play a crucial role in facilitating FDI as companies need to exchange their native currency with the foreign country's currency, highlighting the interconnectedness of financial activities across international boundaries.

Learn more about Foreign direct investment (FDI) here:

https://brainly.com/question/37869830

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