According to the Department of Commerce Information Given in the Textbook

question 8

Multiple Choice

According to the Department of Commerce information given in the textbook, the industry in which the United States has made the largest amount of foreign direct investment (FDI) abroad is __________.

• A) finance (except depository institutions) and insurance
• B) information
• C) manufacturing
• D) mining

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, often associated with ownership of 20% to 50% of voting stock.

Cost Method

An accounting method where investments are recorded at their acquisition cost.

Journal Entries

The method by which transactions are recorded in the company's accounting records with a debit and credit entry.

Significant Influence

The ability to be involved in the financial and managerial policy decisions of an investment without having controlling authority over those policies.