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How Does Foreign Direct Investment Compare with Indirect Portfolio Investment

Question 61

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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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