A key feature of direct investment is maintaining full ownership of overseas facilities, offices, and plants, which implies ______ control.

A key feature of direct investment is maintaining full ownership of overseas facilities, offices, and plants, which implies ______ control.

• A. Full
• B. Partial
• C. None
• D. Shared

Answer: (A)

Direct investment means owning foreign operations outright, giving the company complete managerial authority over those assets. With full ownership, the firm can set strategy, allocate resources, and make day-to-day decisions independently, which is why it implies full control of overseas facilities, offices, and plants. Other arrangements involve sharing or relinquishing some control—partial or shared control occurs in joint ventures or partnerships, while no ownership means no controlling interest at all. So the best completion is “full” control, reflecting the complete ownership that direct investment establishes.

Direct investment means owning foreign operations outright, giving the company complete managerial authority over those assets. With full ownership, the firm can set strategy, allocate resources, and make day-to-day decisions independently, which is why it implies full control of overseas facilities, offices, and plants.

Other arrangements involve sharing or relinquishing some control—partial or shared control occurs in joint ventures or partnerships, while no ownership means no controlling interest at all. So the best completion is “full” control, reflecting the complete ownership that direct investment establishes.