As Chinese companies expand their FDI into the United States by establishing new affiliates and...

Question:

As Chinese companies expand their FDI into the United States by establishing new affiliates and expanding existing affiliates, U.S. imports from China will tend to decrease.

True

False

Why?

FDI:

Foreign Direct Investment (FDI) refers to the investment which made by an investor from other country in the domestic country. This can be done by acquiring an existing organization or establishing a new unit in the domestic country.

Answer and Explanation: 1

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False.

This statement is incorrect because it depends upon the type of product the Chinese companies introduce in the US. The Chinese companies may...

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What is a Foreign Investment? - Definition & Examples

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Chapter 25 / Lesson 8
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Foreign investment is the organizational or individual method of investing in the physical assets or ownership stakes of a company that is located in another nation. Learn about the definition and benefits of foreign investment and dive into some examples.


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