2. Foreign direct investmentWhich of the following statements about foreign direct investment (FDI) are correct? Check all that apply.FDI occurs when the parent company obtains sufficient common stock in a foreign company to assume voting control.FDI is an effective method of technology transfer.Trade restrictions have no effect on foreign direct investment.FDI occurs when a firm in one country sells investment goods in another country.U.S. FDI includes accounts in foreign banks owned by U.S. residents.

Both the home country and the host country derive significant economic benefits from FDI. It is a…

2. Foreign direct investment Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply. FDI occurs when the parent company obtains sufficient common stock in a foreign company to assume voting control. ⒸFDI is an effective method of technology transfer. Trade restrictions have no effect on foreign direct investment. FDI occurs when a firm in one country sells investment goods in another country. U.S. FDI includes accounts in foreign banks owned by U.S. residents.

2. Foreign direct investment Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply. FDI occurs when the parent company obtains sufficient common stock in a foreign company to assume voting control. ⒸFDI is an effective method of technology transfer. Trade restrictions have no effect on foreign direct investment. FDI occurs when a firm in one country sells investment goods in another country. U.S. FDI includes accounts in foreign banks owned by U.S. residents.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. Foreign direct investment
Which of the following statements about foreign direct investment (FDI) are correct? Check all that apply.
FDI occurs when the parent company obtains sufficient common stock in a foreign company to assume voting control.
FDI is an effective method of technology transfer.
Trade restrictions have no effect on foreign direct investment.
FDI occurs when a firm in one country sells investment goods in another country.
U.S. FDI includes accounts in foreign banks owned by U.S. residents.

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