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The difference between Foreign Direct Investment and Portfolio Investment is that Multiple Choice Portfolio Investment mostly represents the sale and purchase of foreign financial assets

The difference between Foreign Direct Investment and Portfolio Investment is that

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Portfolio Investment mostly represents the sale and purchase of foreign financial assets such as stocks and bonds that do not involve a transfer of control.

Foreign Direct Investment mostly represents the sale and purchase of foreign financial assets such as stocks whereas

Portfolio Investment mostly involves the sales and purchase of foreign bonds. Portfolio Investment takes place as firms attempt to take advantage of various market imperfections.

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