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user100 [1]
2 years ago
10

Indicate whether each of the following actions represents foreign direct investment or foreign portfolio investment. Foreign Dir

ect Investment Foreign Portfolio Investment Buying a corporate bond in a foreign country Opening up a factory in a foreign country Which of the following is more likely to engage in foreign direct investment?A. A corporation B. An individual investor
Business
1 answer:
cupoosta [38]2 years ago
4 0

Answer: See explanation

Explanation:

A foreign direct investment is simply referred to as an investment that is made by an economic entity in one country into a particular business that is been situated in another country.

A foreign portfolio investment has to do with the holding of financial assets like bonds, stocks, and cash equivalents in another country.

Based on the.abive explanation,

Buying a corporate bond in a foreign country - This is a foreign portfolio investment

Opening up a factory in a foreign country - This is a foreign direct investment.

It should also be noted that a corporation is more likely to engage in foreign direct investment while the individual can engage in the foreign portfolio investment.

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