Which of the following is an example of U.S.foreign direct investment?
A) A Swedish car manufacturer opens a plant in Tennessee.
B) A Dutch citizen buys shares of stock in a U.S.company.
C) A U.S.based restaurant chain opens new restaurants in China.
D) A U.S.citizen buys stock in companies located in Japan.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) involves a company or individual from one country making an investment into business interests located in another country. In this case, a U.S.-based restaurant chain opening new restaurants in China is an example of U.S. foreign direct investment.

Which of the Following Is an Example of U