Which of the Following Would Be an Example of Direct

question 57

Multiple Choice

Which of the following would be an example of direct foreign investment in DVCs?

• A) A grant from the World Bank to build an irrigation project in Kenya
• B) The financing of a new chemical plant in Peru by a German company
• C) A low-interest loan from the U.S. government to Turkey to purchase military hardware
• D) A loan from the Japanese government to the Indonesian government to pay for electronic equipment

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Definitions:

Initial Public Offering

The process through which a private company goes public by offering its stocks to the public for the first time.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital by underwriting or acting as the client's agent in the issuance of securities.

Tesla Motors

An American electric vehicle and clean energy company founded by Elon Musk, known for its innovative electric cars, solar products, and battery energy storage.

Economic Profit

The difference between a firm's total revenue and its opportunity costs.