Nov
14
Suppose That Pfizer, A U.s. Firm, Purchases $1 Million Worth Of Laptop Computers From?
By Suppose that Pfizer, a U.S. firm, purchases $1 million worth of laptop computers from Sony, a Japanese firm. The laptops are produced in Japan.
Sony exchanges the $1 million at Tokyo Bank for 100 million yen. Tokyo Bank lends the $1 million to Honda Motor Company, which uses it to expand its automobile manufacturing facility in Indiana.
13.4. The expansion of the Honda plant in Indiana represents which of the following?
A. Japanese foreign direct investment in the United States
B. Japanese exports to the United States
C. Japanese foreign portfolio investment in the United States
D. Japanese imports from the United States
1 Comments
November 14th, 2009 at 4:04 am
A. direct investment.