The outward stock of foreign direct investment refers to:

• A. the total value of exports of goods and services to foreign countries
• B. the total value of foreign investments made by non-residents in the domestic country
• C. the total value of imports of goods and services from foreign countries
• D. the total value of domestic investments made by residents in foreign countries

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of Foreign Direct Investment (FDI). FDI refers to investments made by a resident entity in one country into business interests located in another country, typically involving ownership or control of a company or assets abroad.
2. Step 2: Differentiate between 'outward' and 'inward' FDI. Outward FDI is when residents of a country invest in foreign countries, while inward FDI is when foreign residents invest in the domestic country.
3. Step 3: Analyze the options given: exports and imports relate to trade in goods and services, not investment flows, so they are not related to FDI.
4. Step 4: Recognize that the total value of foreign investments made by non-residents in the domestic country corresponds to inward FDI, not outward FDI.
5. Step 5: Conclude that the outward stock of foreign direct investment is the total value of domestic investments made by residents in foreign countries, which matches the correct answer.