[amp_mcq option1=”The acquisition of existing textile mill overseas” option2=”The creation of a wholly owned business firm overseas” option3=”The purchase of bonds or stocks issued by Pharma Company overseas” option4=”The construction of a new steel plant overseas ” correct=”option3″]<\/p>\n
The correct answer is (c).<\/p>\n
Foreign direct investment (FDI) is an investment made by a company or individual in one country into business interests located in another country. FDI takes place when a company invests in production, distribution, or marketing facilities in a foreign country. This can involve the acquisition of an existing business, the establishment of a new business, or the expansion of an existing business.<\/p>\n
The purchase of bonds or stocks issued by a foreign company is not considered FDI because it does not involve the establishment of a new business or the expansion of an existing business. Instead, it is a form of portfolio investment, which is an investment in financial assets such as stocks, bonds, and other securities.<\/p>\n
The other options (a), (b), and (d) are all examples of FDI because they involve the establishment of a new business or the expansion of an existing business in a foreign country.<\/p>\n
(a) The acquisition of an existing textile mill overseas is an example of FDI because it involves the purchase of a business in a foreign country.<\/p>\n
(b) The creation of a wholly owned business firm overseas is an example of FDI because it involves the establishment of a new business in a foreign country.<\/p>\n
(d) The construction of a new steel plant overseas is an example of FDI because it involves the expansion of an existing business in a foreign country.<\/p>\n","protected":false},"excerpt":{"rendered":"
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