Principles of Macroeconomics / Unit 13 MAC 1208 short lesson, about 20 seconds
Direct and Portfolio Investment
Captions available
The idea
Foreign direct investment means buying a large stake in a firm or building one, conventionally ten percent or more, with a management role. Portfolio investment is purely financial and below that threshold.
In practice
The first is slow to reverse; the second can leave in days.
Where people slip
That difference in speed makes a sudden stop possible, as unit seven showed.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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