BACHELOR OF BUSINESS ADMINISTRATION

Previous
Next

BUSINESS ADMINISTRATION

BUSINESS ENVIRONMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Identify the following in order:i. On account of increase in export duty made by the government, the foreign demand has gone down.ii. The government permitted cent percent foreign Direct Investment in some sectors of retailing.
A
Political, Economic
B
Economic, Political
C
Economic, Economic
D
Political, Political
Explanation: 

Detailed explanation-1: -FDI up to 49% is permitted under automatic route in this sector and FDI beyond 49% and up to 74% would be permitted with government approval.

Detailed explanation-2: -FDI creates new jobs and more opportunities as investors build new companies in foreign countries. This can lead to an increase in income and mor purchasing power to locals, which in turn leads to an overall boost in targetted economies.

Detailed explanation-3: -GDRs are equity representing share-holders funds, foreign investment in the form of equity shares issued outside India by a Depository Bank, on behalf of an Indian company which is covered under the FDI policy. GDR proceeds are reckoned as Foreign Direct Investment. Hence, statement 3 is correct.

Detailed explanation-4: -Answer and Explanation: The correct answer is e. A Chinese company buying a microprocessor factory in Korea. Direct foreign investment occurs when a foreign entity runs the investment itself.

There is 1 question to complete.
Previous
Next