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Foreign direct investment is the provision of capital into a company or project by a financier who is from a foreign country. In portfolio investment, anyone can invest in the portfolio, whether or not he is from a local company or a foreign company.

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Q: Distinguish between foreign direct investment and portfolio investment?
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What is the difference between FDI and FII?

Portfolio investors: buy stocks or bonds in foreign country's and foreign direct investment: Investment that establishes a lasting interest in another country. SK(APEX) FII is investing into financial markets of India. Majorly secondary market. FDI is acquisition of physical assets or capital in INdia. It leads to change in management, transfer of technology, increase in production etc. 1. FDI is an investment that a parent company makes in a foreign country. On the contrary, FII is an investment made by an investor in the markets of a foreign nation. 2. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily. 3. Foreign Direct Investment targets a specific enterprise while FII targets the capitak markets of foreign country. 4. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor 5. FDI flows into the primary market, the FII flows into secondary market. 6. FIIs are short-term investments, the FDI's are long term. FDI means foreign direct investment. FDI outflow means withdrawal of investments from a country is more than new investment, i.e.. more money is taken out than invested at a particular time. Portfolio investors: buy stocks or bonds in foreign country's and foreign investment: is an investment in an enterprise or buisness that operates outside the investors country.


Investments by public bodies in foreign financial instruments are called?

Foreign Portfolio Investments


What are the factors affecting foreign investment?

check


Full form of fdi?

Foreign direct investment


What term refers to the process whereby a foreign company makes any lasting investment with a controlling ownership stake in a domestic company?

This is known as foreign direct investment.

Related questions

What is meant by the term portfolio investment?

Portfolio investment refers to investments in foreign countries that are withdrawable at short notice, such as investment in foreign stocks and bonds.


What has the author Itay Goldstein written?

Itay Goldstein has written: 'Foreign direct investment vs. foreign portfolio investment' -- subject(s): Foreign Investments, Mathematical models, Portfolio management


3 main components of the capital account?

Debt flows, Foreign Direct Investment Flows and Portfolio Investment Flows


Is there any difference between fdi and direct investment?

If the direct investment is foreign, then no, since FDI stands for 'foreign direct investment'.


What is the difference between foreign trade and foreign investment?

when MNCs invest their money to buy assets such as land and machines, it is known as foreign investment. It is made with the hope that the value of these assets will increase in future whereas foreign trade is the trade which takes place between two or more countries through MNCs. Foriegn Trade includes buying and selling of good under an aggreement while Foriegn Investment only deals with investments in shares of properties on a foriegn land


What is the difference between FDI and FII?

Portfolio investors: buy stocks or bonds in foreign country's and foreign direct investment: Investment that establishes a lasting interest in another country. SK(APEX) FII is investing into financial markets of India. Majorly secondary market. FDI is acquisition of physical assets or capital in INdia. It leads to change in management, transfer of technology, increase in production etc. 1. FDI is an investment that a parent company makes in a foreign country. On the contrary, FII is an investment made by an investor in the markets of a foreign nation. 2. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily. 3. Foreign Direct Investment targets a specific enterprise while FII targets the capitak markets of foreign country. 4. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor 5. FDI flows into the primary market, the FII flows into secondary market. 6. FIIs are short-term investments, the FDI's are long term. FDI means foreign direct investment. FDI outflow means withdrawal of investments from a country is more than new investment, i.e.. more money is taken out than invested at a particular time. Portfolio investors: buy stocks or bonds in foreign country's and foreign investment: is an investment in an enterprise or buisness that operates outside the investors country.


Foreign investment policies of many economies have come along way since 1990's Briefly discuss as how the present plocy is different from the past?

I want know the defference between present policy of foreign investment and past policy of foreign investment


What have you learned about foreign direct investment and the political economy of trade?

foreign direct investment is that investment in which a foreign country invests in a host country.


What has the author Jia He written?

Jia He has written: 'Foreign exchange exposure, risk and the Japanese stock market' -- subject(s): Investment analysis, Mathematical models, Portfolio management, Bonds


What is the effect of corporate governance on foreign investment?

What is the effect of corporate governance on foreign investment?


Who need foreign investment?

All countries require foreign investment in order to be competitive in many markets including technology. Foreign investment allows for free trade.


What is the most popular foreign investment made?

A foreign investment is an investment made by a company or entity based on one country, into a company based in another country. The most popular foreign investment made is China.