How Does Foreign Direct Investment Compare with Indirect Portfolio Investment

question 61

Multiple Choice

How does foreign direct investment compare with indirect portfolio investment?

• A)Foreign direct investment involves investments such as owning a factory,company,or real estate in a foreign country,whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.
• B)Foreign direct investment involves investments such as owning a factory,company,or real estate in a foreign country,whereas indirect portfolio investment involves such things as taking loans from a foreign company.
• C)Foreign direct investment involves actions such as trading in the currency of a foreign country,whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.
• D)Foreign direct investment involves making loans to a foreign company,whereas indirect portfolio investment involves taking loans from a foreign company.