Which of the following would be an example of direct foreign investment in DVCs?

A) a grant from the World Bank to build an irrigation project in Kenya
B) the financing of a new chemical plant in Peru by a German company
C) a low-interest loan from the U.S. government to Turkey to purchase military hardware
D) a loan from the Japanese government to the Indonesian government to pay for electronic equipment

Direct Foreign Investment

Direct Foreign Investment involves an individual or company in one country investing in business interests in another country, typically involving ownership of facilities, properties, or assets.

Chemical Plant

An industrial facility specialized in processing chemicals or chemical compounds to produce a variety of products or raw materials.

World Bank

An international credit institution that extends loans and grants to governmental authorities in needy countries for the objective of completing capital projects.