What is the term for when companies from one country establish new manufacturing plants in another country?

Agricultural economics MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Agricultural economicsagriculture-mcqs › agricultural-economics
Published
28 Mar 2019
Last updated
28 May 2026

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Explanation

Foreign direct investment refers to the process where firms from one nation set up production facilities or factories in a different country. This distinguishes it from concepts like discrimination, profit maximization, or economies of scale.

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