Jen and Alica are both U.S.citizens.Jen opens a cafe in France.Alicia buys equipment from a company in Canada to use in her factory.Whose action is an example of U.S.foreign direct investment?
A)Jen's and Alica's
B)Jen's but not Alicia's
C)Alicia's but not Jen's
D)Neither Anthony's nor Tom's.

Question

Quizplus · Accepted Answer

Jen's action of opening a cafe in France involves U.S. foreign direct investment as she is directly investing in a business located in a foreign country. Alicia's action of buying equipment from a Canadian company does not involve foreign direct investment as she is not directly investing in a foreign business, but rather just purchasing goods from a foreign company.

Jen and Alica Are Both U