Which of the Following Is an Example of Foreign Direct

question 6

Multiple Choice

Which of the following is an example of Foreign Direct Investment?

• A)Ford motor company puts $10 million from its pension fund into a mutual fund containing shares of foreign companies.
• B)Dr.Gareau, a French biologist, buys $5,000 worth of shares of Toyota.
• C)Wells Fargo Bank buys $10 million worth of Bank of England T-Bills.
• D)Ford buys a controlling interest in Land Rover, a British automobile company.

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Definitions:

Inflation

The climb in the general pricing landscape for goods and services, depleting the power of procurement.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the increase of price levels across the economy, but not an absolute decline in prices.

Deflation

A decrease in the general price level of goods and services, often caused by a reduction in the supply of money or credit.

Wages

Payments made to workers for their labor, typically based on hours worked or amount produced, and a key factor in employment contracts.