Which of the following is an example of direct foreign investment?
A) A U.S. citizen buys stock in a Mexican company.
B) The Bank of China buys U.S. Treasury bonds.
C) Apple builds a plant in Ireland.
D) A company in England buys inputs to production from a German company.
C
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According to the HeckscherOhlin model, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to
a. widen or aggravate the income disparity between skilled and unskilled workers. b. reduce the income disparity between skilled and unskilled workers. c. lower the wages of both groups of workers. d. raise the wages of both groups of workers.
A debtor nation is a country that
A) during its entire history has consistently run a capital account deficit. B) borrows more from the rest of the world than it lends to it. C) lends more to the rest of the world than it borrows from it. D) during its entire history has invested more in the rest of the world than other countries have invested in it. E) during its entire history has borrowed more from the rest of the world than it has lent to it.