The Stock of Foreign Direct Investment Refers To

question 59

Multiple Choice

The stock of foreign direct investment refers to:

• A) the total accumulated value of foreign-owned assets at a given time.
• B) the number of shares of a foreign firm held by the local investors.
• C) to the amount of FDI undertaken over a given time period (normally a year).
• D) the dividend amount paid by the foreign firm to local investors.
• E) the flow of foreign direct investment out of a country.

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Definitions:

Interest Rates

The percentage charged on the total amount of borrowed money, or paid as earnings on an investment.

Future Dollars

A term referring to the anticipated value of a currency taking into account inflation or deflation over time.

Expected Rate Of Return

The profit or loss one anticipates on an investment that has various known or expected rates of return.

Total Investment

The sum of all monetary resources allocated into various assets, projects, or securities at a given time.