The correct answer is: B. FII invests in technology-oriented enterprises, whereas FPI invests in traditional business setups.
Foreign direct investment (FDI) is a type of investment that involves a company or individual acquiring a lasting interest in an enterprise operating in another country. This can take the form of establishing a new business, acquiring an existing business, or expanding an existing business. FDI is considered to be a more stable form of investment than foreign portfolio investment (FPI), as it is typically made with a longer-term view.
Foreign portfolio investment (FPI) is a type of investment that involves buying and selling financial assets in another country. This can include stocks, bonds, and other securities. FPI is considered to be a more volatile form of investment than FDI, as it is typically made with a shorter-term view.
Option A is correct, as both FDI and FPI bring capital into the economy. Option C is correct, as the restrictions on the entry of FDI are lower than that on FPI. Option D is correct, as FDI is considered to be more stable than FPI. FPI can be withdrawn even at a short notice.
Option B is incorrect, as FDI and FPI can be invested in any type of enterprise, regardless of its technology orientation.