What's the Difference Between Foreign Direct Investment and Foreign Portfolio

question 1

Multiple Choice

What's 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 can give a low-income country access to funds and technology it would not otherwise have,but foreign portfolio investment does not expand that access.

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Definitions:

Camus

A French philosopher, author, and journalist known for his existential works and his concept of the absurd.

Reason

The ability to think abstractly, form arguments, and make inferences. Sometimes referred to as a “faculty” of the human mind (a leftover from eighteenth-century psychology). In metaphysics, however, it often has a more controversial meaning— namely, that human ability to go beyond experience to determine, through thought alone, what reality is really like.

Sisyphus

A figure in Greek mythology condemned to endlessly roll a boulder up a hill only for it to roll down every time it neared the top, symbolizing futile effort or eternal struggle.

Suffering

The experience of pain, distress, or hardship, which can be physical, emotional, or mental in nature.