Which of the following is not true regarding foreign direct investment?
A) The world stock of outward FDI was $26.3 trillion at the beginning of 2014.
B) FDI refers to direct investments in a foreign country, at a level sufficient to obtain significant management control.
C) FDI includes foreign investment in stock markets.
D) FDI calculations include direct investments in equipment, structures, and organizations in a foreign country.
E) FDI does not include exports.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain significant management control. It does not include mere foreign investment in stock markets. The world stock of outward FDI was $26.3 trillion at the beginning of 2014.

Which of the Following Is Not True Regarding Foreign Direct