Portfolio investment represents transactions involving long-term financial assets (such as stocks and bonds) between countries that do not affect the transfer of control.

Name: Portfolio investment represents transactions involving long-term financial assets (such as stocks and bonds) between countries that do not affect the transfer of control.
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Question

Quizplus · Accepted Answer

This is a correct definition of portfolio investment, as opposed to foreign direct investment (FDI) which involves the transfer of control of a business.

Portfolio Investment Represents Transactions Involving Long-Term Financial Assets (Such as Stocks