Consider the following transactions: • Harrods of London sells stock to the General Electric pension fund. • Honda expands its factory in Marysville, Ohio. • A Fidelity mutual fund sells its Volkswagen stock to a French investor. • An American cell phone company establishes an office in the Czech Republic. 20. Which transaction would increase US net capital outflow through foreign direct investment? 21. Which transactions would decrease US net capital outflow through foreign portfolio investment?
