Final answer:
In the given options, an example of Foreign Direct Investment (FDI) is when an Italian firm builds a plant in Nebraska (option C), as it involves significant investment and potential managerial control in a foreign entity.
Step-by-step explanation:
The Foreign Direct Investment (FDI) you are asking about refers to a specific type of international financial transaction, where an investor purchases at least ten percent of a company or starts a new enterprise in a foreign country.
Among the provided options, the one that represents an example of FDI would be:
- An Italian firm builds a plant in Nebraska.
This is because the scenario involves a company from one country investing in the assets of another country by establishing a new business or acquiring significant ownership in an existing one.
Purchasing government bonds, buying personal goods, or acquiring stocks (less than ten percent) would typically fall under the category of portfolio investment, which usually involves less commitment and can be withdrawn more easily and quickly than FDI.