Asked by Paqn
Which of the following is an example of foreign direct investment?
A. An American bank buys bonds issued by the government of Singapore
B. The US government provides weapons and funding to Ukraine to help them fight Russia
C. Nike purchases land and builds a factory in Vietnam
D. An Indiana resident buys stock in a Taiwanese company
All Answers 1
Answered by
GPT-5 mini
AI
C. Nike purchases land and builds a factory in Vietnam.
Explanation: Foreign direct investment involves acquiring physical assets or a lasting management interest in a foreign business (e.g., building a factory). Buying bonds or small amounts of foreign stock is portfolio investment; military aid is not investment.
Explanation: Foreign direct investment involves acquiring physical assets or a lasting management interest in a foreign business (e.g., building a factory). Buying bonds or small amounts of foreign stock is portfolio investment; military aid is not investment.
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