Asked by Ananaya Sharma on Jun 17, 2024
Verified
Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations.
Direct Investment
The acquisition of a controlling interest in a foreign business by making investments such as purchasing the company's stock directly.
Capital Commitments
The funds that a company plans to spend on long-term assets or projects over a period of time.
Ownership
The state or fact of possessing something, which can include both tangible assets (like property) and intangible assets (like intellectual property).
- Absorb the understanding of the concept and types of international enterprise, encompassing franchising, direct investment, and joint initiatives.
Verified Answer
BR
Bhuvi RelanJun 17, 2024
Final Answer :
True
Explanation :
Direct investment involves making significant capital commitments, which can give the investor rights of ownership and control over foreign operations.
Learning Objectives
- Absorb the understanding of the concept and types of international enterprise, encompassing franchising, direct investment, and joint initiatives.