Maria and Michael are both U.S. citizens. Maria opens a café in Spain. Michael builds a U.S.-based factory using equipment from Japan. Whose action is an example of U.S. foreign direct investment?
A)Maria's and Michael's
B)Maria's but not Michael's
C)Michael's but not Maria's
D)Neither Michael's nor Maria's

Question

Quizplus · Accepted Answer

Maria's investment in opening a café in Spain is an example of U.S. foreign direct investment because it involves a U.S. citizen investing in a business in another country. Michael's action, building a factory in the U.S. with equipment from Japan, does not constitute foreign direct investment since the investment is domestic, not in a foreign country.

Maria and Michael Are Both U