A Canadian company acquires 100 percent ownership of a Mexican company through a stock purchase.This is an example of ____ and it would be included in Mexico's ____.

Question

Quizplus · Accepted Answer

This is an example of foreign direct investment because the Canadian company is acquiring 100 percent ownership of a Mexican company. It would be included in Mexico's capital account because it represents a change in ownership of an asset (the Mexican company) between residents of different countries.

A Canadian Company Acquires 100 Percent Ownership of a Mexican