The Difference Between Foreign Direct Investment (FDI)and Foreign Aid Is

The difference between foreign direct investment (FDI) and foreign aid is:

A) not significant because both items are counted as part of the current account.
B) FDI refers to foreign businesses opening factories or operations,while foreign aid is monetary assistance.
C) FDI earns interest while foreign aid is a gift of money with no interest component.
D) FDI is monetary aid while foreign aid is the establishment of operations by foreign-owned businesses.

Correct Answer:

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