Which of the following is foreign direct investment?

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QUESTION:

Which of the following is foreign direct investment?

a. A U.S. investor buys 1,000 shares of stock of BMW AG, the German automobile company.

b. Procter & Gamble lends $2 million to a firm in Japan that is half-owned by Procter & Gamble and half-owned by a Japanese chemical company.

c. Mattel, a U.S.-based toy company, buys the 51 percent of its Mexican affiliate that it did not already own.

d. Intel sets up an affiliate in Brazil using only two sources of financing for the affiliate: $100,000 of equity capital from Intel and a $1 million loan from a Brazilian bank to the new affiliate?


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