A US Mutual Fund Buys Stock Issued by a Corporation in in Colombia

question 173

Essay

A U.S. mutual fund buys stock issued by a corporation in Colombia. A U.S. grocery store chain builds and manages a new warehouse in Honduras. Which one(s) of these is foreign direct investment? Which one(s) would be taken into account when computing U.S. net capital outflows?

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Definitions:

Color-Blind Recessive Allele

A genetic variant that must be inherited from both parents to express a color-blind condition, as it is recessive.

Carrier

An individual or entity that transports substances or genetic information from one place to another, such as a person who carries and can pass on a genetic mutation without exhibiting symptoms of the disease.

Dominant X-Linked Trait

A genetic characteristic encoded on the X chromosome that is expressed in individuals with only one copy of the gene.

Recessive Y-Linked Trait

A genetic characteristic controlled by a gene on the Y chromosome that is expressed only when present on a male's Y chromosome without a dominantly acting allele on the X chromosome.