The difference between Foreign Direct Investment and Portfolio Investment is that
A)Portfolio Investment mostly represents the sale and purchase of foreign financial assets such as stocks and bonds that do not involve a transfer of control.
B)Foreign Direct Investment mostly represents the sale and purchase of foreign financial assets such as stocks whereas Portfolio Investment mostly involves the sales and purchase of foreign bonds.
C)Foreign Direct Investment is about buying land and building factories,whereas portfolio investment is about buying stocks and bonds.
D)all of the options

Question

Quizplus · Accepted Answer

Portfolio investment refers to the purchase and sale of financial assets such as stocks and bonds without any involvement in the management or control of the company. Foreign Direct Investment, on the other hand, involves a significant ownership stake in a foreign company and includes the transfer of control and management. Therefore, the key difference between the two is the extent to which the investor is involved in the operations of the foreign company, which is not the case in portfolio investment.

The Difference Between Foreign Direct Investment and Portfolio Investment Is