Question

In: Economics

Which of the following is an example of U.S. foreign direct investment and by itself increases...

Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?

A. A Swiss bank buys bonds issued by a U.S. company.

B. A French restaurant opens and operates a restaurant in New York.

C. A U.S. electronics company opens and operates a new factory in India.

D. A U.S. pension fund buys bonds issued by the Japanese government.

Solutions

Expert Solution

Option C. If an  U.S. electronics company opens and operates a new factory in India, then the Cash will decrease in U.S., because Cash Outflow happens from U.S.

Investment Comes to India, cash Flow comes in.


Related Solutions

What is a foreign direct investment? An example of foreign direct investment. What is the impact...
What is a foreign direct investment? An example of foreign direct investment. What is the impact of the pandemic on foreign direct investment? Summary of Foreign direct investment (Own words)
Define each of the following as direct or portfolio foreign investment.      a. Nike (a U.S....
Define each of the following as direct or portfolio foreign investment.      a. Nike (a U.S. company) builds new factories in Cambodia:     (Click to select)   Neither type of investment   Direct investment   Portfolio investment  .      b. A U.S. hedge fund purchases 30 percent of the shares of a Brazilian paper manufacturer:     (Click to select)   Portfolio investment   Neither type of investment   Direct investment  .      c. Mercedes-Benz (a German company) builds a manufacturing plant in Alabama:     (Click to select)   Neither type of investment   Direct investment   Portfolio investment  .      d. Intel (a U.S....
In the context of foreign direct investment, which of the following is a benefit of offshoring?...
In the context of foreign direct investment, which of the following is a benefit of offshoring? a. It requires little investment. b. It has the potential for high profits. c. It involves no significant risk. d. It represents a strong opportunity for small firms Which of the following is a difference between the millennial generation and Generation Z? a. Unlike the millennial generation, Generation Z approaches adulthood planning to work for success. b. Unlike the millennial generation, Generation Z is...
What would be an example for using the FDI(Foreign direct investment) approach? Which types of products...
What would be an example for using the FDI(Foreign direct investment) approach? Which types of products and services would be appropriate for Foreign direct investment method?
Foreign direct investment is a form of investment which benefits all stakeholders. Discuss.
Foreign direct investment is a form of investment which benefits all stakeholders. Discuss.
In Germany-explain the laws that govern foreign direct investment (for example, are there provisions to attract...
In Germany-explain the laws that govern foreign direct investment (for example, are there provisions to attract foreign direct investment, such as tax incentives, most-favored-nation treatment, dispute resolution fora; or provisions that restrict foreign direct investors such as high local content requirements or currency exchange restrictions).
What is Foreign Direct Investment? Why do firms choose Foreign Direct Investment instead of exporting or...
What is Foreign Direct Investment? Why do firms choose Foreign Direct Investment instead of exporting or licensing? What benefit do Foreign Direct Investment have for the host country?
Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply....
Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply. ______________________________________________________________________ The acquisition of a U.S. corporation by a German company is an example of European direct investment in the United States. Direct investment between the United States and Japan to produce the same automobile is classified as conglomerate diversification. FDI occurs when earnings of the parent company’s foreign subsidiary are reinvested in plant expansion. FDI flows include purchases of U.S. government bonds by...
AN EXAMPLE OF A MULTINATIONAL COMPANY ENTERING A NEW FOREIGN DIRECT INVESTMENT BASED ON REVENUE MOTIVES
AN EXAMPLE OF A MULTINATIONAL COMPANY ENTERING A NEW FOREIGN DIRECT INVESTMENT BASED ON REVENUE MOTIVES
Assess the recent trends in direct foreign investment (DFI) abroad by U.S. firms. Compare the DFI...
Assess the recent trends in direct foreign investment (DFI) abroad by U.S. firms. Compare the DFI in the United Kingdom with the DFI in France in the last five years. Offer a possible reason for the large difference. Based on the recent trends in DFI, are U.S. based MNCs pursuing opportunities in Asia? In Eastern Europe? In Latin America? Explain in detail.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT