Which of the Following Best Describes Foreign Direct Investment FDI)

question 40

Short Answer

Which of the following best describes foreign direct investment FDI)?
a. A firm's direct investment in production and/or service activities abroad.
b. The purchases of foreign securities by people within the U.S.
c. The purchases of U. S. securities by people from other countries.
d. Avoidance of brokers or other financial intermediaries when making foreign investments.
e. B and C above.

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Definitions:

Purchase Price

The amount of money paid to acquire a good, service, or financial asset.

Face Value

The nominal value printed on a bond or stock certificate; it does not fluctuate with market prices.

Forward Rate

The agreed-upon price for a transaction that will occur at a future date, as in a forward contract.

Zero-Coupon Bond

A bond that is sold at a discount and pays no interest, but is redeemed at its face value at maturity, generating a profit for the holder.