Which of the following are direct foreign investments, and which are not? Event a. A French company merges with an American company; stockholders in the U.S. company exchange their stock for shares in the French firm. b. The same Saudi businessman buys a New York apartment building. Is this a direct foreign investment? Yes Yes c. A Saudi businessman buys $10 million of IBM stock. No d. An Italian firm builds a plant in Russia and manages the plant as a contractor to the Russian government. No

Which of the following are direct foreign investments, and which are not? Event a. A French company merges with an American company; stockholders in the U.S. company exchange their stock for shares in the French firm. b. The same Saudi businessman buys a New York apartment building. Is this a direct foreign investment? Yes Yes c. A Saudi businessman buys $10 million of IBM stock. No d. An Italian firm builds a plant in Russia and manages the plant as a contractor to the Russian government. No

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5PA

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