Which of the following is an example of U.S.foreign direct investment?
A)A Chinese company opens a restaurant in the U.S.
B)An Australian bank buys stocks issued by a U.S.corporation.
C)A U.S.bank buys bonds issued by an Australian corporation.
D)A U.S.company opens an auto parts factory in Canada.

Question

Quizplus · Accepted Answer

U.S. foreign direct investment refers to the direct investment made by U.S. companies in foreign countries. Opening an auto parts factory in Canada involves a U.S. company investing in a foreign country, thus it is an example of U.S. foreign direct investment. Options A and B refer to foreign companies investing in the U.S., while option C refers to a U.S. bank buying bonds issued by a foreign company, which is not considered foreign direct investment.

Which of the Following Is an Example of U