A form of direct foreign investment in which an investing entrepreneur holds a minority ownership position in a foreign venture is known as a(n) .
Question
A form of direct foreign investment in which an investing entrepreneur holds a minority ownership position in a foreign venture is known as a(n) .
Solution
This is known as a Portfolio Investment. In this type of investment, the investor purchases stocks, securities, and other forms of investment instruments in a foreign country, but does not have a controlling interest or active role in the management of the company.
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