Which of the Following Is True About Foreign Direct Investment

question 29

Multiple Choice

Which of the following is true about foreign direct investment?

• A) It is a means of reducing transportation costs in export sales.
• B) Since the 1980s, foreign direct investment has been relatively stable worldwide.
• C) Only very large corporations are undertaking foreign direct investment.
• D) It refers only to the amount of money U.S. corporations put into non-U.S. businesses.

---

Definitions:

Credit

A financial agreement where a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

Equity Account

An account representing the owner's or shareholders' interest in a company, reflected in the capital stock, retained earnings, and contributed surplus on the balance sheet.

Unearned Revenue

Money received by a company for products or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.

Retained Earnings

The segment of net income that is not issued as dividends, reserved by the company for reinvestment in its essential business or for settling debts.