When a Japanese Auto Maker Opens a Factory in the U.S

question 136

Multiple Choice

When a Japanese auto maker opens a factory in the U.S. ,U.S.net capital outflow

• A)increases because the foreign company makes a portfolio investment in the U.S.
• B)declines because the foreign company makes a portfolio investment in the U.S.
• C)increases because the foreign company makes a direct investment in capital in the U.S.
• D)declines because the foreign company makes a direct investment in capital in the U.S.