The difference between foreign direct investment and

foreign trade is that in foreign direct investment, a company:
a. sets up offices outside its home country to manage sales in foreign countries.
b. sets up production facilities outside its home country in a foreign country.
c. hires citizens of another country to sell its products in that country instead of using citizens from its own country.
d. allows nationals of a foreign country to buy its stock.


Answer: b

Political Science

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