Which of the following is an example of foreign direct investment?
A)You purchase a plane ticket to China on American Airlines.
B)Qantas Airways (Australia)builds an airline hangar and terminal in Japan.
C)You buy a plane that was made in China.
D)A stock broker from China sells you a Chinese government savings bond.

Question

Quizplus · Accepted Answer

Foreign direct investment involves a company from one country investing in and establishing operations in another country. In this case, Qantas Airways from Australia is building an airline hangar and terminal in Japan, which is an example of foreign direct investment. A, C, and D involve transactions between individuals and do not necessarily involve companies investing in other countries.

Which of the Following Is an Example of Foreign Direct