What are the two categories of international investment？What is their major difference?

What are the two categories of international investment？What is their major difference?

International investment can be classified into two categories,that is,foreign direct investment.( FDI) and portfolio investment. The major difference between them is that FDI is made for returns through controlling the enterprises or assets invested in in a host country,while portfolio investment refers to purchases of foreign financial assets for a purpose other than controlling.