The Difference Between Foreign Direct Investment (FDI)and Foreign Aid Is

question 206

Multiple Choice

The difference between foreign direct investment (FDI) and foreign aid is:

• A) not significant because both items are counted as part of the current account.
• B) FDI refers to foreign businesses opening factories or operations,while foreign aid is monetary assistance.
• C) FDI earns interest while foreign aid is a gift of money with no interest component.
• D) FDI is monetary aid while foreign aid is the establishment of operations by foreign-owned businesses.

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