Which of the following is an example of foreign direct investment in China?
A) U.S. auto entrepreneur Elon Musk buys stock in Alibaba Group Holding Limited of Hangzhou, China.
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

Foreign direct investment (FDI) involves a company or individual from one country making a physical investment into building a business in another country. In this case, Wal-Mart buying a warehouse in Shanghai is an example of FDI in China.

Which of the Following Is an Example of Foreign Direct