The following investments are classified as FDI except _________.
A) equity capital
B) reinvestment of earnings
C) intra-company loans
D) portfolio investment

Question

Quizplus · Accepted Answer

Portfolio investment is not classified as foreign direct investment as it involves buying stocks or bonds of a foreign company without having any control over the management of the company. FDI, on the other hand, involves a significant degree of ownership and control in the foreign entity. The other options listed (equity capital, reinvestment of earnings, and intra-company loans) are all forms of FDI.

The Following Investments Are Classified as FDI Except _________