Throughout the 1990s, the Amount of Foreign Direct Investment Directed

question 28

Multiple Choice

Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects:

• A) a slowdown in global economic activity.
• B) the increasing share of the U.S. in the total FDI stock.
• C) the decline in cross-border flows of foreign direct investment.
• D) the increasing internationalization of business corporations.

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Definitions:

Sole Proprietors

Individuals who own and operate their business by themselves, having complete control and bearing ultimate legal and financial responsibility.

Asset

Anything of value owned by a person or company that can be used or sold to pay debts or generate income.

Debt

Money owed by one party to another under an agreement to repay borrowed funds or provided goods/services.

Profit

Profit represents the financial gains obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.