ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC DEVELOPMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
If your company opens and operates a branch in a foreign country, you will be engaging in a foreign direct investment.
A
True
B
False
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.

Detailed explanation-2: -Foreign direct investment FDI may be undertaken by individuals as well as business entities. Flows of FDI comprise capital provided (either directly or through other related enterprises) by a foreign direct investor to an enterprise, or capital received from an investing enterprise by a foreign direct investor.

Detailed explanation-3: -Which of the following statements is true of foreign direct investment? It is the process of investing in, controlling, and managing value-added activities in other countries.

Detailed explanation-4: -Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country.

There is 1 question to complete.