Question

Desmond, a US citizen, opens and operates a jewelry store in Lisbon, Portugal. This counts as: investment for Desmond and US foreign direct investment. investment for Desmond and US foreign direct investment. US foreign portfolio investment and US domestic investment. US foreign portfolio investment and US domestic investment. US foreign direct investment and US domestic investment. US foreign direct investment and US domestic investment. investment for Desmond and US foreign portfolio investment.

Answer 1

Answer: Investment for Desmond and US foreign direct investment.

Explanation:

This is an investment for Desmond because he owns the store. He is therefore the equity shareholder and investor into the store.

It is also a U.S. Foreign Direct Investment (FDI) because FDI is what describes a situation where an entity from a country goes to another country and sets up a business there that they will own and operate. Desmond being a U.S. citizen is operating a store in another country so this is U.S. FDI.