Final answer:
Foreign direct investment, which is a long-term commitment with a significant ownership share and managerial influence, is not the same as importing, which simply involves the sale of foreign goods and services in a country. The statement is therefore false.
Step-by-step explanation:
The statement 'Importing and foreign direct investment are two approaches to meeting overseas demand' is False. Importing involves bringing goods and services into a country from abroad for sale, while foreign direct investment (FDI) refers to a company from one country making a physical investment into building a factory in another country. FDI involves a significant degree of influence and control over the enterprise and generally has a long-term horizon.
Foreign direct investment implies a significant stake (over 10%) in a foreign company, which often comes with some level of managerial responsibility or control. Unlike portfolio investments, which tend to be more short-term and can be liquidated quickly through simple transactions like phone calls or computer clicks, FDI transactions require more extensive planning and time to execute due to their complexity and scale.