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Economics

What is the difference between foreign direct investment and foreign portfolio investment.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 12RQ: What is the difference between foreign direct investment and portfolio investment?

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What is the difference between foreign direct investment and foreign portfolio investment.

How do changes in local real interest rates and foreign interest rates impact the decision to carry out investment by (i) foreigners and (ii) locals.

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