Which of the following is an example of U.S. foreign direct investment?
A)A Polish company opens a shipbuilding plant in the United States.
B)A Bolivian bank buys U.S. corporate bonds.
C)A U.S. bank buys Bolivian corporate bonds.
D)A U.S. furniture maker opens a plant in Mexico.

Question

Quizplus · Accepted Answer

U.S. furniture maker opening a plant in Mexico is an example of U.S. foreign direct investment. Foreign direct investment refers to the investment made by a company or individual from one country, into a business in another country, where the investor has control over the management and operations of the foreign business. In this case, the U.S. furniture maker is investing in a manufacturing plant in Mexico, where it will have control over the plant's operations. Choices A and B involve investment by foreign companies in the U.S., while choice C involves investment by a U.S. bank in a foreign country.

Which of the Following Is an Example of U