Which of the following best refers to the outright construction or purchase abroad of productive facilities,such as manufacturing plants,by domestic residents?
A) Direct investment
B) Portfolio investment
C) Short-term capital investment
D) Long-term capital investment

Question

Quizplus · Accepted Answer

Direct investment is the outright construction or purchase abroad of productive facilities by domestic residents. Portfolio investment refers to the purchase of stocks, bonds, or other financial assets for the purpose of generating a financial return. Short-term and long-term capital investment are vague terms that could refer to a variety of investment strategies.

Which of the Following Best Refers to the Outright Construction