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How Does Foreign Direct Investment Compare with Indirect Portfolio Investment

Question 55

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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