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    Direct Foreign Investments & Portfolio Foreign Investments

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    What is the difference between the direct foreign investment and a portfolio foreign investment? Give an example of each. Which type of investment is a multinational industrial company more likely to make? This is a 300 word response, about a page long with 2 references.

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    https://brainmass.com/business/foreign-direct-investment/direct-foreign-investments-portfolio-foreign-investments-420322

    Solution Preview

    Foreign Portfolio Investments often include short term earnings like from stocks and bonds and these investors are not looking to manage or control the company but to create an investment portfolio (Holsapple, Ozawa, & Olienyk, 2006).

    Foreign Direct Investments
    The World Trade Center (2011) defines foreign direct investments (FDI) as the activity that takes place when an investor in one country purchases assets in another country with the intention of controlling those assets. The controlling factor is the factor that differentiates direct ...

    Solution Summary

    This solution explains the difference between direct foreign investments and portfolio foreign investments and gives an example of each. In addition, the solution chooses the best alternative for a multinational industrial company.

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