Which type of investment involves the acquisition of foreign assets for the purpose of controlling them?

Question

Quizplus · Accepted Answer

Foreign direct investment involves the acquisition of foreign assets with the purpose of controlling them. This is different from foreign portfolio investment, which involves buying foreign stocks or securities as a passive investor without any control over the assets. Capital investment and controlling ownership may be related to foreign direct investment, but they do not necessarily involve the control of foreign assets.

Which Type of Investment Involves the Acquisition of Foreign Assets