If your Canadian-based firm opens and operates a new long board factory in Costa Rica,what type of investment is your firm engaging in?
A) foreign portfolio investment
B) foreign financial investment
C) foreign direct investment
D) foreign capital investment

Question

Quizplus · Accepted Answer

The Canadian-based firm is engaging in a foreign direct investment because they are opening and operating a new long board factory in Costa Rica, which involves a significant and long-term investment in establishing and managing operations in a foreign country. Foreign portfolio investment refers to investing in stocks or other financial assets of a foreign company, and foreign financial investment refers to investing in financial instruments such as bonds or securities issued by a foreign country. Foreign capital investment is a broad term that could refer to any type of investment in a foreign company or economy.

If Your Canadian-Based Firm Opens and Operates a New Long