A$.$Every country, including Canada and the US$,$ has used foreign borrowing to industrialize and develop its economy. These long$-$term loans are classified as foreign direct investment $($FDI$)$ and portfolio investment. Explain fully the difference between these two types of loans, including implications for risk and sovereignty. Provide examples of each type.

B$.$Explain as fully as possible how short$-$term capital flows are different from long$-$term capital flows. Give examples of each. For your long$-$term examples try to use different examples, such as real estate, than those you provided for short$-$term capital flows