Foreign Direct Investment Is

question 89

Multiple Choice

Foreign direct investment is:

• A) investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.
• B) investment that occurs when a firm runs its operation domestically, and sells its product abroad.
• C) when foreign companies buy physical capital from the United States.
• D) when foreign companies buy and operate physical capital within the United States.

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Definitions:

Evaporation

The process where liquid water transforms into vapor and enters the atmosphere.

Precipitation

Any form of water - liquid or solid - falling from the atmosphere to the surface of the Earth, including rain, snow, sleet, and hail.

Rain Forests

Dense, usually tropical forests, characterized by high rainfall, rich biodiversity, and a canopy structure with multiple layers of vegetation.

Equator

An imaginary line around the middle of the Earth, equidistant from the North and South Poles, dividing the Earth into the Northern and Southern Hemispheres.