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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

Describe the difference between foreign direct investment and foreign portfolio investment. Who is more likely to engage in foreign direct investment—a corporation or an individual investor? Who is more likely to engage in foreign portfolio investment?

To determine

The difference between foreign direct investment and foreign portfolio investment.

Explanation

Foreign direct investment controls the ownership of a business enterprise in one country by an entity based in another country. The concept of foreign direct investment is different from foreign portfolio investment, a passive i...

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