ECONOMICS (CBSE/UGC NET)

ECONOMICS

BALANCE OF PAYMENTS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The purchase by foreigners of shares in Australian businesses is know as
A
the institutional loans
B
debt finance
C
portfolio investment
D
direct investment
Explanation: 

Detailed explanation-1: -Investors based in Australia can buy stocks directly through their online brokerage accounts. Buying shares in Australia is facilitated by the ASX. Foreign investors can also invest in stocks in Australia provided that their brokerage has listed Australian equities on their platform.

Detailed explanation-2: -Foreign direct investment (FDI) is the prevalent mode of corporate governance to gain control over productive assets abroad.

Detailed explanation-3: -Foreign investment helps Australia reach its economic potential by providing capital to finance new industries and enhance existing industries, boosting infrastructure and productivity and creating employment opportunities in the process.

Detailed explanation-4: -A global depositary receipt (GDR) is a negotiable financial instrument issued by a depositary bank. It represents shares in a foreign company and trades on the local stock exchanges in investors’ countries.

There is 1 question to complete.