_____ refers to capital investment by private firms outside their home countries.
A) Foreign direct investment
B) Foreign portfolio debt investment
C) Foreign portfolio equity investment
D) Capital transfers

Question

Quizplus · Accepted Answer

Foreign direct investment refers to the investment made by a company in a foreign country through the acquisition of a foreign company, creating a subsidiary or branching out to operate in multiple countries. Foreign portfolio debt investment refers to the investment in debt securities issued by a foreign entity. Foreign portfolio equity investment refers to the investment in equity securities issued by a foreign entity. Capital transfers refer to the movement of capital from one country to another without the expectation of repayment.

_____ Refers to Capital Investment by Private Firms Outside Their