The Difference Between Foreign Direct Investment and Portfolio Investment Is

question 5

Multiple Choice

The difference between Foreign Direct Investment and Portfolio Investment is that

• A)Portfolio Investment mostly represents the sale and purchase of foreign financial assets such as stocks and bonds that do not involve a transfer of control.
• B)Foreign Direct Investment mostly represents the sale and purchase of foreign financial assets such as stocks whereas Portfolio Investment mostly involves the sales and purchase of foreign bonds.
• C)Foreign Direct Investment is about buying land and building factories, whereas portfolio investment is about buying stocks and bonds.
• D)All of the above

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Definitions:

Price Orientation

An approach to pricing strategy focused on the cost to set prices, where customer demand or competition may play a secondary role.

Donuts

A type of fried dough confection or dessert food, commonly circular with a hole in the middle, often glazed or sugar-coated and sometimes filled.

Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to buy.

Economic Theory

Economic theory involves a set of principles explaining how economies operate, including the production, distribution, and consumption of goods and services.