Which of the following explains how foreign portfolio investment contributes to economic
development? (1 point)
Domestic investors direct capital to foreign countries through the purchase of
securities issued by foreign entities.
Domestic investors direct capital to foreign countries through loans and grants
issued to promote development.
Domestic investors direct capital to foreign countries through the purchase of
land, labor, and physical capital.
Domestic investors direct capital to foreign countries through the merging of
domestic and foreign businesses.