Larry,a U.S.citizen,opens and operates a bookstore in Spain.This counts as
A)investment for Larry and U.S.foreign direct investment.
B)investment for Larry and U.S.foreign portfolio investment.
C)U.S.foreign direct investment and U.S.domestic investment.
D)U.S.foreign portfolio investment and U.S.domestic investment.

Question

Quizplus · Accepted Answer

Since Larry is a U.S. citizen and is opening and operating a bookstore in Spain, it is considered U.S. foreign direct investment. This investment involves a long-term relationship and ownership or control of the foreign enterprise, which is the case with Larry's bookstore in Spain. Therefore, it cannot be considered as foreign portfolio investment, which involves owning stocks and other financial assets in a foreign company without any ownership or control over the management of the company.

Larry,a US