A business setting up production and/or distribution facilities in foreign countries.

• A. Exporting
• B. Direct marketing
• C. Telesales
• D. Direct investment

Answer: (D)

Foreign direct investment occurs when a company sets up production or distribution facilities in a foreign country. By owning and operating plants, warehouses, or offices abroad, the business gains direct control over operations and can tailor them to the local market, access resources, and secure longer-term presence there. This contrasts with exporting, which means selling goods produced at home into foreign markets without creating local production or distribution assets. Direct marketing and telesales are about how a firm sells to customers and reach markets, not about owning or running facilities overseas.