What ʹ s the difference between foreign direct

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Intermediate Financial Management
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Chapter 27 / Exercise 040
Intermediate Financial Management
Brigham/Daves
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98) Whatʹs the difference between foreign direct investment and foreign portfolio investment?A) Individuals engage in foreign portfolio investment, but only firms can engage in foreigndirect investment.B) Foreign direct investment only takes place when governments make official purchases orforeign investments, while foreign portfolio investment takes place when firms, individuals,or the government purchase foreign investments.C) Foreign direct investment can give a low-income country access to funds and technology itwould not otherwise have, but foreign portfolio investment does not expand that access.D) Foreign direct investment involves purchases of foreign stock or bonds by individuals orfirms, while foreign portfolio investment involves a firm purchasing or building a facility in aforeign country.Answer: A
98)
Diff: 2Page Ref: 734/360Topic: The Benefits of GlobalizationLearning Outcome: Macro 16: Discuss the obstacles to development in developing countries and ways toaddress those obstaclesAACSB: Reflective Thinking28
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Intermediate Financial Management
The document you are viewing contains questions related to this textbook.
Chapter 27 / Exercise 040
Intermediate Financial Management
Brigham/Daves
Expert Verified
99) Foreign direct investment occurs when a Chinese corporation
99)
Diff: 1Page Ref: 734/360Topic: The Benefits of GlobalizationLearning Outcome: Macro 16: Discuss the obstacles to development in developing countries and ways toaddress those obstaclesAACSB: Reflective Thinking, Multicultural and Diversity100) Until recently, many developing countries
Diff: 1Page Ref: 734/360Topic: The Benefits of GlobalizationLearning Outcome: Macro 16: Discuss the obstacles to development in developing countries and ways toaddress those obstaclesAACSB: Reflective Thinking

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