Which of the Following Best Describes Foreign Direct Investment FDI)

question 40

Short Answer

Which of the following best describes foreign direct investment FDI)?
a. A firm's direct investment in production and/or service activities abroad.
b. The purchases of foreign securities by people within the U.S.
c. The purchases of U. S. securities by people from other countries.
d. Avoidance of brokers or other financial intermediaries when making foreign investments.
e. B and C above.

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Definitions:

Bank Account

A financial account maintained by a bank for a customer, allowing the deposit and withdrawal of money and the accrual of interest.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, per unit of time.

Loanable Funds

The money available for borrowing in the financial markets, determined by the savings behavior of individuals and institutions and the central bank's monetary policy.

Investment Spending

Investment spending refers to expenditures made by businesses or individuals on capital goods intended to be used for future production.