Tom and Anthony are both U.S. citizens. Tom buys construction machinery from a company in Canada to use for his U.S construction company. Anthony opens a cafe in Portugal. Whose action is an example of U.S. foreign direct investment
A)Tom's but not Anthony's.
B)Anthony's but not Tom's.
C)Anthony's and Tom's.
D)Neither Anthony's nor Tom's.

Question

Quizplus · Accepted Answer

Foreign direct investment involves establishing a business or acquiring business assets in a foreign country. Anthony opening a cafe in Portugal is an example of U.S. foreign direct investment, as he is establishing a business in another country. Tom buying machinery from Canada is a purchase, not an investment in a foreign business.

Tom and Anthony Are Both U