The Ownership and Control of Foreign Assets, Such as a Manufacturing

question 27

Multiple Choice

The ownership and control of foreign assets, such as a manufacturing plant, is called:

• A) a hedge.
• B) foreign direct investment.
• C) an option.
• D) derivatives.

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Definitions:

Foreign Stocks

Shares of companies based outside the investor's own country, traded on foreign stock exchanges.

Investment Portfolios

A collection of investments held by an individual or institution which may include stocks, bonds, real estate, and more, diversified to manage risk.

Sovereign Debt

Borrowings issued by a national government in foreign currency or its own currency.

National Governments

The organization that governs a nation, responsible for creating and enforcing laws, managing the economy, and providing public services.