Larry,a U.S.citizen,opens and operates a bookstore in Spain.This action is an example of
A) investment for Larry and U.S.foreign direct investment.
B) investment for Larry and U.S.foreign portfolio investment.
C) U.S.foreign direct investment and U.S.domestic investment.
D) U.S.foreign portfolio investment and U.S.domestic investment.

Question

Quizplus · Accepted Answer

Larry's investment in a bookstore in Spain represents U.S. foreign direct investment as he is personally operating the business and has control over its management and operations. This contrasts with U.S. foreign portfolio investment, which typically involves passive investments in foreign stocks or bonds. The investment is also not considered U.S. domestic investment, as it is taking place in Spain.

Larry,a US