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:

Problem Solving Steps

A systematic approach to finding solutions to complex or challenging issues, typically involving understanding the problem, devising a plan, carrying out the plan, and evaluating the results.

Evaluation Skills

The ability to assess the quality, importance, or value of something through analysis and comparison.

Creative Thought

The process of generating new, original, and innovative ideas or concepts.

Preconceived Perceptions

Opinions or attitudes formed in advance without adequate information or experience.