Which of the following are direct foreign investments? Explain your answer.     i. A Chinese company pays $6.49 million for a stake in the Hilton.   ii. A Russian businessman buys $44 billion on FOREX.  iii. An American company buys another American company; stockholders in the bought-US company sell their shares on FOREX.  iv. A Turkish company builds a factory in Ethiopia and manages the factory as a contractor to the Turkish government

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 3SCQ: State whether each of the following events Involves a financial flow to the Mexican economy or a...
icon
Related questions
Question

Which of the following are direct foreign investments? Explain your answer. 

   i. A Chinese company pays $6.49 million for a stake in the Hilton.

  ii. A Russian businessman buys $44 billion on FOREX.

 iii. An American company buys another American company; stockholders in the bought-US company sell their shares on FOREX.

 iv. A Turkish company builds a factory in Ethiopia and manages the factory as a contractor to the Turkish government.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Foreign Direct Investment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
Economics
ISBN:
9781337613057
Author:
Tucker
Publisher:
CENGAGE L
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,