Which of the following is an example of U.S.foreign portfolio investment?
A)Disney builds a new amusement park near Barcelona,Spain.
B)A U.S.citizen buys bonds issued by the British government.
C)A Dutch hotel chain opens a new hotel in the United States.
D)A citizen of Singapore buys a bond issued by a U.S.corporation.

Question

Quizplus · Accepted Answer

Foreign portfolio investment refers to investments in foreign financial assets such as stocks, bonds, and other tradable securities. Option B describes a U.S. citizen investing in British government bonds, which qualifies as a U.S. foreign portfolio investment. Options A, C, and D describe foreign direct investment activities, which involve owning or controlling a physical asset, such as building an amusement park, opening a hotel or buying a bond issued by a U.S. corporation, respectively.

Which of the Following Is an Example of U