A U.S.corporation builds a restaurant in China.Its expenditures are U.S.
A)foreign portfolio investment that increase U.S.net capital outflow.
B)foreign portfolio investment that decrease U.S.net capital outflow.
C)foreign direct investment that increase U.S.net capital outflow.
D)foreign direct investment that decrease U.S.net capital outflow.

Question

Quizplus · Accepted Answer

When a U.S. corporation builds a restaurant in China, it is considered a foreign direct investment, which increases U.S. net capital outflow as capital is moving from the U.S. to China.

A USCorporation Builds a Restaurant in China