Josh runs a landscaping business in Vermont and decides to hire two people in India to maintain his bookkeeping for him electronically.Josh is happy because he can pay them much less than he would pay a bookkeeper in the U.S. ,and the workers enjoy a higher quality of life in India thanks to their jobs with Josh's company.Josh's actions are an example of:
A)foreign portfolio investment.
B)foreign direct investment.
C)importing.
D)exporting.

Question

Quizplus · Accepted Answer

Josh's decision to hire workers in India to maintain his bookkeeping electronically is an example of foreign direct investment as he has established a long-term business presence in another country by employing workers and outsourcing a part of his business operations to them. The other options are not applicable as Josh is not importing, exporting, or making foreign portfolio investments.

Josh Runs a Landscaping Business in Vermont and Decides to Hire