Final answer:
Jason's purchase of a villa in Greece is an example of foreign direct investment (FDI), as it involves the acquisition and management of a foreign asset, differing from portfolio investments which don't require control over the assets.
Step-by-step explanation:
The action of Jason, an investment banker and U.S. citizen, purchasing a villa in Greece with his savings represents an example of foreign direct investment (FDI). As opposed to a portfolio investment, which involves financial investments without management responsibilities like buying government bonds or depositing money in foreign banks, FDI includes the acquisition of foreign assets with the intention to manage and control them. It is an inflow of financial capital to the host country and contributes to the international flows of capital that exceed government debt and encompasses buying real estate, companies, and stocks and bonds.
In Jason's case, his decision to invest in real estate in Greece signifies a transfer of U.S. dollars to the foreign exchange market for the purpose of acquiring Greek assets, thereby creating a direct investment in the Greek economy.