Alan bought 20 shares of Labatt's stock for himself to celebrate his favorite foreign beer company in 2000. Alan's purchase is an example of:
A) foreign direct investment.
B) foreign portfolio investment.
C) importing.
D) exporting.

Question

Quizplus · Accepted Answer

Alan's purchase of Labatt's stock is an example of foreign portfolio investment, as he is investing in a foreign company's stock without taking an active management role in the company's operations. Foreign direct investment involves taking an active role in managing a foreign company, while importing and exporting involve physical goods crossing international borders.

Alan Bought 20 Shares of Labatt's Stock for Himself to Celebrate