A. investment made by a company or entity based in one country, into a company or entity based in another country is a Foreign Direct Investment. These FDI's differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. The standard of living in the recipient country is also improved by higher tax revenue from the company that received the foreign direct investment. However, sometimes countries neutralize that increased revenue by offering tax incentives to attract the FDI in the first place. Most often, Open Economies are the destination for FDI (Foreign Direct Investment). Which statement is true regarding this statement?