Consider the Following: a Foreign Automobile Company Builds a Manufacturing

question 35

Multiple Choice

Consider the following: A foreign automobile company builds a manufacturing plant in Tennessee and European investors buy U.S. Treasury Bonds.

• A) Both activities would be considered direct investment.
• B) Both activities would be considered portfolio investment.
• C) The auto manufacturer in engaging in portfolio investment, and the European investors are engaged in direct investing.
• D) The auto manufacturer in engaging in direct investment, and the European investors are engaged in portfolio investing.

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Definitions:

Lifestyle Analyses

The study of consumers' buying habits and preferences, often used in market research to categorize consumers into different segments based on their lifestyle choices.

Value-Expressive Function

The role of beliefs, purchases, or behaviors in expressing an individual's values, self-concept, and social identity.

Utilitarian Function

A concept in psychology suggesting that attitudes serve a practical function for individuals, helping them to avoid pain or achieve pleasurable outcomes.

Ego-Defensive Function

A psychological mechanism in which individuals protect their self-esteem or ego from being threatened by unpleasant realities or by rationalizing their failures.