When a French Vineyard Establishes a Distribution Center in the U.S

Multiple Choice

When a French vineyard establishes a distribution center in the U.S., U.S. net capital outflow

A) increases because the foreign company makes a portfolio investment in the U.S.
B) declines because the foreign company makes a portfolio investment in the U.S.
C) increases because the foreign company makes a direct investment in capital in the U.S.
D) declines because the foreign company makes a direct investment in capital in the U.S.