An Italian Company Builds and Operates a Pasta Factory in the United

question 66

Multiple Choice

An Italian company builds and operates a pasta factory in the United States.This is an example of Italian

• A)foreign direct investment that increases Italian net capital outflow.
• B)foreign direct investment that decreases Italian net capital outflow.
• C)foreign portfolio investment that increases Italian net capital outflow.
• D)foreign portfolio investment that decreases Italian net capital outflow.

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Definitions:

Financial Industry

A sector of the economy devoted to the management, exchange, and investment of financial assets and offering financial services.

Visas

Official documents or endorsements that allow a person to enter or leave a country, typically issued by the country’s government.

Refugee Crisis

A situation where large numbers of people are displaced and seek asylum due to conflict, persecution, or environmental disasters.

World Financial Center

A term that may refer to a major financial district that houses large banks, stock exchanges, and financial institutions.