A decrease in United States net foreign direct investment would occur if
A)U.S.citizens have decreased the value of foreign stocks and bonds they own.
B)U.S.citizens have decreased their building or purchasing of facilities in foreign countries.
C)net foreign investment decreases.
D)net capital flows increase.

Question

Quizplus · Accepted Answer

Net foreign direct investment is the difference between the amount of foreign direct investment (FDI) in the United States and the amount of U.S. FDI abroad. Therefore, a decrease in United States net foreign direct investment would occur if U.S. citizens have decreased their building or purchasing of facilities in foreign countries (option B). Option A would affect the stock and bond market but not necessarily the FDI. Option C is a restatement of the question without providing any new information. Option D suggests an increase in capital flows, which could potentially affect net foreign direct investment, but it doesn't give enough information to provide a clear answer.

A Decrease in United States Net Foreign Direct Investment Would