An example of direct foreign investment is
A)a U.S. bank granting a loan to a Guatemalan firm.
B)General Motors building an auto production facility in China.
C)a U.S. government foreign aid grant to Bangladesh.
D)the purchase of debt issued by the Panamanian government.

Question

Quizplus · Accepted Answer

General Motors building an auto production facility in China is an example of direct foreign investment because it involves a company from one country investing in physical assets, such as a production facility, in another country to engage in business operations.

An Example of Direct Foreign Investment Is