December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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Fundamentals of International Business 15
than both trade and transfer-related choices. The country making the FDI investment is called the home
country and the country receiving FDI is called the host country.
Foreign Portfolio Investment
It is investment in nancial instruments such as stocks and bonds through the stock exchange and other
nancial markets only to earn a return on the investment. FPI is based on basic portfolio theory accord-
ing to which individuals or rms invest in large amounts of nancial assets in search of the highest
possible risk-adjusted net return. The key task of portfolio management is to reduce the variability ...
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