Answer: a. Foreign direct investment
b. Foreign portfolio investment
Explanation:
a. Opening a retail store in a foreign country is a foreign direct investment. This simply means a scenario whereby one establishes a business in another country that is different from ones own country. For example an American establishing a business in Japan is a foreign direct investment.
b. Buying corporate stock in a retail chain in a foreign country is a foreign portfolio investment. This is a situation when one buys shares, bonds etc in another country.
