Global Management Studies (GMS) 200 Practice Exam

Is a building, buying all or buying part ownership of a business in another country.

Global Sourcing Greenfield Investment Foreign Direct Investment World 3.0

Correct Answer:

Foreign Direct Investment

Explanation:

Foreign Direct Investment is when an organization puts capital into a business in a different country with some degree of control or lasting influence. The description fits this because it covers two common forms: building a new operation abroad (greenfield investment) and purchasing all or part of an existing company (acquisition). Both involve ownership and control across borders, not just buying goods or services from another country. Global sourcing, by contrast, is about procurement without owning the foreign entity, and World 3.0 isn’t a standard term in this context.

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