When a firm builds a factory in a foreign market this is rec

When a firm builds a factory in a foreign market, this is recorded in the balance of payments as:

(a) A portfolio investment
(b) A direct investment asset
(c) A financial derivative

Answer - (b) Direct Investment asset

Building a factory in foreign country market is recorded in balance of payment as \'A direct Investment Asset.\'

Balance of payment is also known as B.O.P. in which all the economic transactions of a country are recorded

Portfolio investment and financial derivative are related to securities market. They do notcome under building a factory in foreign nation.

Hence It is direct investment asset in balance of payments