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.

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Definitions:

Motor Coordination

The harmonious functioning of muscles or groups of muscles for smooth and efficient movement, often involving the integration of sensory input with motor output.

Point Estimate

A single value (or point) estimate to summarize a likely value for a population parameter based on sample data.

Unknown Parameter

A quantity in a statistical model that needs to be estimated from the data because its value is not known a priori.

P-Value

The probability that the observed data (or a more extreme) would occur if the null hypothesis were true, used to determine the statistical significance of the observed effect.