Larry, a Canadian citizen, opens and operates a bookstore in Spain. This counts as which of the following?
A)investment for Larry and Canadian foreign direct investment
B)investment for Larry and Canadian foreign portfolio investment
C)Canadian foreign direct investment and Canadian domestic investment
D)Canadian foreign portfolio investment and Canadian domestic investment

Question

Quizplus · Accepted Answer

Since Larry has opened and operates a physical bookstore in Spain, it counts as Canadian foreign direct investment, which refers to the ownership and management of a foreign business enterprise. It is also an investment for Larry as an individual. However, it is not Canadian foreign portfolio investment, which refers to holding securities (such as stocks or bonds) issued by a foreign company, nor is it Canadian domestic investment, which refers to investments made within Canada by Canadian individuals or companies.

Larry, a Canadian Citizen, Opens and Operates a Bookstore in Spain