An increase in United States net foreign direct investment would occur if
A)United States citizens have increased the value of foreign stocks and bonds they own.
B)United States citizens have increased their building or purchasing of facilities in foreign countries.
C)net foreign investment increases.
D)net capital flows decrease.

Question

Quizplus · Accepted Answer

Net foreign direct investment refers to the value of foreign assets that are owned by U.S. citizens subtracted from the value of U.S. assets that are owned by foreigners. Therefore, an increase in U.S. citizens building or purchasing facilities in foreign countries would lead to a higher U.S. net foreign direct investment. Choices A and D are incorrect as they do not apply to foreign direct investment, and choice C is too generic and does not specify any particular cause or effect.

An Increase in United States Net Foreign Direct Investment Would