The correct answer is (c).
Foreign direct investment (FDI) is an investment made by a company or individual in one country into business interests located in another country. FDI takes place when a company invests in production, distribution, or marketing facilities in a foreign country. This can involve the acquisition of an existing business, the establishment of a new business, or the expansion of an existing business.
The purchase of bonds or stocks issued by a foreign company is not considered FDI because it does not involve the establishment of a new business or the expansion of an existing business. Instead, it is a form of portfolio investment, which is an investment in financial assets such as stocks, bonds, and other securities.
The other options (a), (b), and (d) are all examples of FDI because they involve the establishment of a new business or the expansion of an existing business in a foreign country.
(a) The acquisition of an existing textile mill overseas is an example of FDI because it involves the purchase of a business in a foreign country.
(b) The creation of a wholly owned business firm overseas is an example of FDI because it involves the establishment of a new business in a foreign country.
(d) The construction of a new steel plant overseas is an example of FDI because it involves the expansion of an existing business in a foreign country.