Which of the Following Is an Example of Foreign Direct

question 206

Multiple Choice

Which of the following is an example of foreign direct investment?

• A)You purchase a plane ticket to China on American Airlines.
• B)American Airlines builds a hub in China.
• C)You buy a plane that was made in China.
• D)A stock broker from China sells you a Chinese government savings bond.

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Definitions:

Selling Season

The specific time period during which demand for a particular product or service is significantly higher, often due to seasonal factors.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant differentiation.

Differentiate

To distinguish a product, service, or brand from competitors by emphasizing unique features or benefits.

Cash Expenditure

The actual outflow of cash or cash equivalents by a company, typically for operating expenses, investments, or acquisitions.