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What Is a Difference Between Foreign Aid and Foreign Direct

Question 39

Multiple Choice

What is a difference between foreign aid and foreign direct investment?


A) Foreign aid cannot be given to fund physical capital investments; foreign direct investment provides funding only for physical capital investments.
B) Foreign aid is available for emergencies; foreign direct investment is for the same type of help in nonemergency situations.
C) Those providing funds typically do not gain ownership rights when foreign aid is provided but do gain ownership rights through foreign direct investment.
D) Foreign aid is a purchase of foreign property at a deep discount; foreign direct investment is the purchase of foreign property at a market price.

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