Which of the Following Is an Example of Direct Foreign

question 49

Multiple Choice

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

• A) A foreign citizen buys a share of stock in Ford.
• B) The German-owned BMW company builds an assembly plant near Greenville, SC.
• C) A foreign citizen lends money to General Motors by buying a GM bond.
• D) A foreign citizen travels to the United States as a tourist, spending money in the United States on various goods and services.

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Definitions:

Supply

Refers to the total amount of a specific good or service that is available to consumers.

Excess Supply

A scenario in which the supply of a good or service available from sellers surpasses what buyers want to purchase at the existing price.

Price Of Burritos

The amount of money required to purchase a burrito, often influenced by factors like ingredients cost, demand, and location.

Demand Shifts

Movements of the demand curve to the left or right, indicating a change in the quantity demanded at every price.