How does foreign direct investment compare with indirect portfolio investment?
A. Foreign direct investment involves investments such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.
B. Foreign direct investment involves investments such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment involves such things as taking loans from a foreign company.
C. Foreign direct investment involves actions such as trading in the currency of a foreign country, whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.
D. Foreign direct investment involves making loans to a foreign company, whereas indirect portfolio investment involves taking loans from a foreign company.
Answer: A
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