Which of the following is an example of foreign direct investment in China?
A)U.S.auto entrepreneur Elon Musk buys stock in Tata Motors of Mumbai,India.
B)Chinese Shenzen Airlines company buys a small U.S.midwest airline company,Air Chicago.
C)The U.S.company Wal-Mart buys a warehouse in Shanghai.
D)The bank of China purchases U.S.Treasury bonds.
E)A U.S.foreign exchange speculator buys $200,000 worth of the Chinese currency the yuan.

Question

Quizplus · Accepted Answer

The purchase of a warehouse by Wal-Mart in Shanghai represents foreign direct investment because it is a long-term investment in a physical asset in China by a foreign company. The other options listed involve investments or purchases that do not qualify as foreign direct investment.

Which of the Following Is an Example of Foreign Direct