Final answer:
The option that is not a type of FDI is D. Portfolio investment, which entails buying less than ten percent of a company without taking on managerial responsibilities, often with a short term focus.
Step-by-step explanation:
The type of investment that is not a form of foreign direct investment (FDI) is D. Portfolio investment.
Foreign direct investment (FDI) involves purchasing more than ten percent of a company and often includes some managerial responsibility.
This implies a long-term engagement with the company in question. Examples of FDI include A. Joint ventures and C. Greenfield investments, where an investor starts a new venture in a foreign country by constructing new operational facilities.
On the other hand, B. Licensing is often confused with FDI but it generally involves contractual arrangements that allow foreign companies to use certain properties, patents, trademarks, or knowledge but does not entail capital investment and is therefore not classified as FDI.
In contrast, portfolio investment involves buying less than ten percent of a company, which does not grant the investor managerial control or significant influence over the company.
Instead, portfolio investments are mainly financial and can be bought or sold quickly, often focusing on short-term gains. An example of portfolio investment is buying government bonds or making deposits in a foreign bank.