Foreign direct investment in the United States declined 42 percent in the first quarter of 2009.This means that
A)people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009.
B)people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009.
C)people or firms in other countries reduced their building of facilities of purchases of facilities in the United States by 42 percent in the first quarter of 2009.
D)people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to when people or firms from one country invest in building facilities or purchasing facilities in another country. Therefore, option C is the correct answer as it states that people or firms in other countries reduced their building or purchases of facilities in the United States by 42 percent in the first quarter of 2009. Option A refers to purchases of stocks and bonds, which is not the same as foreign direct investment. Option B and D refer to people or firms in the United States reducing their purchases, which is not what foreign direct investment means.

Foreign Direct Investment in the United States Declined 42 Percent