QUESTION 14 Consider the following: A foreign automobile company builds a manufa
ID: 2710730 • Letter: Q
Question
QUESTION 14
Consider the following: A foreign automobile company builds a manufacturing plant in USA and Chinese investors buy U.S. Treasury Bonds. PLEASE EXPLAIN YOUR REASONING
A. Both activities would be considered direct investment.
B. Both activities would be considered portfolio investment
The auto manufacturer in engaging in portfolio investment, and Chinese investors are engaged in direct investing.
The auto manufacturer in engaging in direct investment, and Chinese investors are engaged in portfolio investing.
A. Both activities would be considered direct investment.
B. Both activities would be considered portfolio investment
C.The auto manufacturer in engaging in portfolio investment, and Chinese investors are engaged in direct investing.
D.The auto manufacturer in engaging in direct investment, and Chinese investors are engaged in portfolio investing.
Explanation / Answer
D. The auto manufacturer in engaging in direct investment, and chinese investors are engaged in portfolio investing.
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