A Finnish corporation builds a factory the produces ceiling fans in the United States.This is an example of Finish
A)foreign direct investment that increases Finnish net capital outflow.
B)foreign direct investment that decreases Finnish net capital outflow.
C)foreign portfolio investment that increases Finnish net capital outflow.
D)foreign portfolio investment that decreases Finnish net capital outflow.

Question

Quizplus · Accepted Answer

This is an example of foreign direct investment, as a Finnish corporation is directly investing in building a factory in the United States. It increases Finnish net capital outflow as they are investing their own money to build and operate the factory.

A Finnish Corporation Builds a Factory the Produces Ceiling Fans