An Australian manufacturer decides to set up a manufacturing plant in China. A Chinese Money Market Fund
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Question:
An Australian manufacturer decides to set up a manufacturing plant in China. A Chinese Money Market Fund decides to purchase US Treasury Bills.
a.Both activities would be considered direct investment.
b.Both activities would be considered portfolio investment.
c.The Australian manufacturer is engaging in direct investment, and the Chinese investor is engaging in portfolio investment.
d.The Australian manufacturer is engaging in portfolio investment, and the Chinese investor is engaging in direct investing.
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