Question

question 50 (1 point)
the difference between foreign direct investment (fdi) and foreign portfolio investment (fpi) is that:
fdi is investing more in fixed assets (companies and real estate), as opposed stocks and bonds (which is portfolio investment)
there is no difference, these terms mean the same thing
fdi in mdcs has collapsed in the post - wwii era (to the point of inconsequence), while portfolio investment has soared
fdi by mncs in ldcs has been non - existent to date, while foreign portfolio investment by ngos has made a tremendous impact

Explanation:

Foreign direct investment (FDI) involves investment in fixed assets like companies and real estate. Foreign portfolio investment (FPI) is about stocks and bonds. The other options are incorrect. There is a difference between FDI and FPI. FDI in MDCs (more - developed countries) has not collapsed post - WWII. And FDI by MNCs (multinational corporations) in LDCs (less - developed countries) is not non - existent.

Answer:

A. FDI is investing more in fixed assets (companies and real estate), as opposed stocks and bonds (which is portfolio investment)