Foreign Investment Occurs When

question 12

Multiple Choice

Foreign investment occurs when

• A)a branch of a business enters into trade relations with a foreign country.
• B)the subsidiary of a business enters into trade relations with a foreign country.
• C)a business invests money in a foreign business.
• D)a business establishes a branch or subsidiary in a foreign country.
• E)a business invests money in a foreign country.

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Definitions:

Weaker Peso

Refers to a decline in the value of the Mexican Peso relative to other currencies, which can affect international trade and economic conditions in Mexico.

Mexican Exports

Goods or services sold by Mexico to other countries, which contributes to the country's economy and trade balance.

US Imports

Goods and services brought into the United States from other countries for sale or use.

Financial Market Panic

A widespread and abrupt drop in investor confidence that leads to a sharp sell-off in stock, bond, or other financial markets.