Which of the Following Is an Example of Foreign Direct

question 206

Multiple Choice

Which of the following is an example of foreign direct investment?

• A)You purchase a plane ticket to China on American Airlines.
• B)American Airlines builds a hub in China.
• C)You buy a plane that was made in China.
• D)A stock broker from China sells you a Chinese government savings bond.

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Definitions:

Rights Offering

A method by which a company raises capital by giving its existing shareholders the right to purchase additional shares directly from the company at a specified price within a set time.