If a Japanese real estate company XR buys stocks of EMMAR
properties (a real-estate company in UAE), this form of
international capital flow is known as:
a) foreign direct investment
b) foreign Portfolio investment
c) commercial loan
d) official development assistance
Solution:
It's a foreign direct investment.
Explanation:
1. It's done by single entity( company) so it's not a portfolio investment.
2. It's a purchase of stocks, so it calls for share in controlling powers and in profits(not interest) so it's not a loan.
3. It's not an assistance. It's open market purchase.
If a Japanese real estate company XR buys stocks of EMMAR properties (a real-estate company in...
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