The US Commerce Department Defines Foreign Direct Investment as Occurring When

question 17

Multiple Choice

The U.S. Commerce Department defines foreign direct investment as occurring when:

• A) a U.S. company acquires at least 51% ownership of a foreign company or a foreign company acquires at least 51% ownership of a U.S. company.
• B) a U.S. foreign company acquires an American company with 10 or more workers or a foreign company acquires a foreign company with 10 or more workers.
• C) a U.S. company acquires at least 10% ownership of a foreign company or a foreign company acquires at least 10% ownership of a U.S. company.
• D) there is only investment by foreign governments in American companies.

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Definitions:

International Business Transactions

Economic activities that involve the exchange of goods, services, or information across national borders.

Arbitration Clauses

Provisions in a contract that require disputes to be resolved through arbitration, instead of through court litigation.

Arbitration

A method of resolving disputes outside the courts, where the parties to a dispute refer it to one or more arbitrators who make a binding decision.

Legal Proceedings

Formal activities carried out by a court, such as trials or hearings, to resolve disputes or enforce laws.