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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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