Foreign direct investment occurs when a Chinese corporation
A)purchases stock issued in China.
B)opens a new Chinese factory.
C)purchases 1,000 shares of stock issued by an Canadian company.
D)opens a new factory in France.
E)exports investment goods to Canada.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to the investment made by a company in a foreign country by establishing a new factory or acquiring an existing business. Therefore, option D is the best choice as it mentions about the Chinese corporation opening a new factory in France. Options A, B, C, and E do not involve foreign direct investment.

Foreign Direct Investment Occurs When a Chinese Corporation