Which of the following would be an example of FDI?
A)A Brazilian investor buys German government bond.
B)An American buys a new Swedish car.
C)An Italian firm builds a plant in Nebraska.
D)A Canadian investor buys a French equity.

Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) refers to when a company or individual makes a physical investment in a foreign country, such as building a plant, buying real estate, or setting up a subsidiary. Option C shows an Italian firm building a plant in Nebraska, which would be considered as Foreign Direct Investment. The other options do not involve physical investment in a foreign country.

Which of the Following Would Be an Example of FDI