Any investment made in a country by residents outside that country is
A) foreign direct investment.
B) foreign exchange.
C) gross private domestic investment.
D) net exports.

Question

Quizplus · Accepted Answer

Foreign direct investment is defined as any investment made by residents of one country in a foreign country, typically involving the transfer of capital, technology, and management skills. This can include investments in factories, offices, or other physical facilities as well as the acquisition of foreign firms or the establishment of joint ventures. Therefore, option A is the best choice for this definition. Option B refers to the exchange of one currency for another and is not specific to investment. Option C refers to the total investment made in a country, regardless of the source of the investment. Option D refers to the difference between a country's total exports and imports and is not specific to foreign investment.

Any Investment Made in a Country by Residents Outside That