Suppose IBM buys treasury bonds from the United Kingdom as part of its investment portfolio. This is an example of:

Question

Quizplus · Accepted Answer

This is an example of foreign portfolio investment, as IBM is investing in securities (treasury bonds) of a foreign country, the United Kingdom. Foreign direct investment generally involves acquiring a controlling stake in a foreign company or establishing a new subsidiary in a foreign country. Foreign import and export investments are not relevant in this context.

Suppose IBM Buys Treasury Bonds from the United Kingdom as Part