Suppose That an American Opens and Operates a Candy Factory

question 8

Multiple Choice

Suppose that an American opens and operates a candy factory in Finland.This is an example of

• A)foreign direct investment.American saving is used to finance Finish investment.
• B)foreign direct investment.American saving is used to finance American investment.
• C)foreign portfolio investment.American saving is used to finance Finish investment.
• D)foreign portfolio investment.American saving is used to finance American investment.

---

Definitions:

Conditions

Terms or stipulations specified in a contract or agreement that must be fulfilled before certain obligations or rights become effective.

Bailee

A person or entity who is given possession but not ownership of an item for a particular purpose.

Bailment

Bailment occurs when property is temporarily transferred from its owner (bailor) to another person (bailee) for a specific purpose, without transferring ownership.

Compensation

The act of providing something, typically money, in exchange for loss, service, or injury.