An Example of Direct Foreign Investment Is

question 75

Multiple Choice

An example of direct foreign investment is

• A)a U.S. bank granting a loan to a Guatemalan firm.
• B)General Motors building an auto production facility in China.
• C)a U.S. government foreign aid grant to Bangladesh.
• D)the purchase of debt issued by the Panamanian government.

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Definitions:

Interest Rate

The percentage charged or paid for the use of money on a yearly basis, often expressed as an annual percentage rate.

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Interest Rate

The cost of borrowing money or the return on investment for savings and loans, expressed as a percentage of the principal.

Enduring Popularity

a state whereby something maintains widespread approval, support, or use over a long period.