A decrease in Canadian net foreign direct investment would occur if
A)Canadian citizens have decreased the value of foreign stocks and bonds they own.
B)Canadian citizens have decreased their building or purchasing of facilities in foreign countries.
C)net foreign investment decreases.
D)net capital flows increase.
E)will reduce the balance on the capital account.

Question

Quizplus · Accepted Answer

Net foreign direct investment is the difference between the total amount of foreign direct investment that a country makes abroad and the total amount of foreign direct investment that foreigners make in that country. Therefore, a decrease in Canadian net foreign direct investment would occur if Canadian citizens have decreased their building or purchasing of facilities in foreign countries (choice B). Options A, C, D, and E do not directly affect Canadian net foreign direct investment.

A Decrease in Canadian Net Foreign Direct Investment Would Occur