What Is the Difference Between Foreign Direct Investment and Foreign

question 12

Multiple Choice

What is the difference between foreign direct investment and foreign portfolio investment?

• A)Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms, while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country.
• B)Individuals engage in foreign portfolio investment, but only firms can engage in foreign direct investment.
• C)Foreign direct investment only takes place when governments make official purchases or foreign investments, while foreign portfolio investment takes place when firms, individuals, or the government purchase foreign investments.
• D)Foreign direct investment cannot give a low-income country access to funds and technology it would not otherwise have, but foreign portfolio investment does expand that access.
• E)Foreign direct investment guarantees a future return, but foreign portfolio investment involve a high degree of risk.

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Definitions:

Probability Of Success

The likelihood of an outcome occurring that is deemed a success in a given trial or experiment.

Student Body

The group of students collectively attending an academic organization.

Female Students

Refers to students who identify as female in educational settings.