What Is Foreign Direct Investment? - Definition, Advantages & Disadvantages


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How can foreign direct investment (FDI) be best described?

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1. Robert lives in America and he wants to make a greenfield investment in Mauritius, which is a developing country. What type of investment does Robert want to make?

2. Identify two names used to indicate foreign direct investors:

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About This Quiz & Worksheet

Test your knowledge of foreign direct investments (FDI) with these practice questions. You will be quizzed on the advantages and disadvantages of FDIs.

Quiz & Worksheet Goals

Use these assessment tools to assess your knowledge of:

  • Foreign direct investment
  • Greenfield investment
  • The different types of foreign direct investors
  • The advantages of FDIs for foreign investors
  • The advantages of FDIs for foreign countries

Skills Practiced

This worksheet and quiz let you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the lesson on foreign direct investments
  • Defining key concepts - show that you can accurately define important terms, such as multinational corporations, as well as greenfield and brownfield investments
  • Critical thinking - apply relevant concepts to examine foreign direct investments in a different light

Additional Learning

To learn more about foreign direct investments, review the lesson, What is Foreign Direct Investment? Definition, Advantages & Disadvantages. This lesson has the following objectives:

  • Define foreign direct investment
  • Explore both the advantages and disadvantages of FDIs for multinational enterprises and foreign countries
  • Examine the role of the Organization of Economic Cooperation and Development
  • Understand the differences between multinational enterprises and multinational corporations