Which of the following is an example of portfolio investment?
Correct answer: A. buying stocks and bonds
- A. buying stocks and bonds
- B. lowering tariff barriers
- C. paying subsidies
- D. building a factory
Explanation
Portfolio investment means purchasing financial assets such as stocks or bonds without acquiring direct managerial control of a foreign enterprise. Building a factory is foreign direct investment, not portfolio investment.
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Practise International Political Economy
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