ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a loan raised overseas by the Australian Government
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the establishment of a foreign bank in Australia
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overseas borrowings by the Electricity commission
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the purchase of westpac shares by an overseas resident
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Detailed explanation-1: -Direct investment takes different shapes and forms. A company may enter a foreign market through so-called greenfield direct investment, in which the direct investor provides funds to build a new factory, distribution facility, or store, for example, to establish its presence in the host country.
Detailed explanation-2: -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.
Detailed explanation-3: -Q. 1 What is direct investment outside India? Direct investment outside India means investment by way of contribution to the capital or subscription to the Memorandum of Association of a foreign entity but does not include portfolio investment.
Detailed explanation-4: -Australian businesses invest huge amounts of money in other economies. At the end of 2021, the total amount of Australian money invested overseas was valued at $3.3 trillion.