An Indian student paid 16,000 for a course in a university in the ...

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An Indian student paid 16,000 for a course in a university in the U.S. This transaction will lead to a(n) ________.
 
  A) decrease in the GDP of India B) increase in the GDP of India
  C) increase in the GDP of U.S. D) decrease in the GDP of U.S.

Question 2

The purchase of less than 10 percent of the shares of ownership in a company in another country is known as
 
  A) portfolio investment.
  B) an ineffective method for encouraging economic growth.
  C) foreign direct investment.
  D) a hostile takeover.

[Brummell1998]

Answer to Question 1

C

Answer to Question 2

A