FDI stocks
A)are the common shares of multinational companies that invest abroad.
B)are mutual funds that invest in FDI.
C)represent the accumulation of previous years' FDI flows.
D)at the sum total of current year FDI flows.

Question

Quizplus · Accepted Answer

FDI stocks represent the accumulation of previous years' FDI flows, meaning the total amount invested by a foreign company in a host country at a given time. It includes the initial investment and subsequent investments, such as reinvested earnings, in the same enterprise. Option A is incorrect because common shares refer to ownership in a company, not FDI investments. Option B is incorrect because mutual funds are not FDI stocks, but rather investment vehicles that may hold FDI stocks as part of their portfolio. Option D is incorrect because FDI flows represent the amount of investment made by a foreign company in a host country during a particular period, usually a year, while FDI stocks refer to the total amount invested over time.

FDI Stocks