Question

Which of the following is an example of capital outflow for Germany?a. German company Haribo sells a production facility in Ireland to an Irish competitor b. Volkswagen exports the new 2014 VW Beatle to the United Kingdom c. GM sells stock in Audi to German resident d. Kinder, another German company, acquires Haribo in a multimillion dollar transaction

Answer 1

c. GM sells stock in Audi to German resident

Step-by-step explanation:

It means a capital outflow for Germany because a foreing company to Germany sells its shareholding position in a German Company,

the sale means that a German Resident gives money to a foreign company in exchange for the Audi shares.