6. Which of the following are direct foreign investments? a. A Saudi businessman buys $10 million of

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6. Which of the following are direct foreign investments?

a. A Saudi businessman buys $10 million of IBM stock.

b. The same businessman buys a New York apartment building.

c. A French company merges with an American company; stockholders in the U.S. company exchange their stock for shares in the French firm.

d. An Italian firm builds a plant in Russia and manages the plant as a contractor to the Russian government.

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International Finance Theory And Policy

ISBN: 9781292019550

10th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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