Which of the following would be Canadian foreign direct investment?
A) Your Canadian-based mutual fund buys shares of stock in Eastern European companies.
B) A Canadian citizen opens a Tim Hortons franchise in Hong Kong.
C) A Swiss bank buys a Canadian government bond.
D) A German tractor factory opens a plant in Victoria, British Columbia.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) involves establishing a lasting interest in or significant influence over a foreign enterprise. Opening a Tim Hortons franchise in Hong Kong by a Canadian citizen constitutes Canadian FDI because it represents a Canadian business expanding its operations into another country, thereby establishing a lasting business interest there.

Which of the Following Would Be Canadian Foreign Direct Investment