UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Foreign Trade and Investment in India

  • question_answer
          Foreign Direct Investment involves:

    A) A speculator trying to make a profit by buying company shares on a foreign stock exchange.

    B) A UK energy company buying territory abroad where it expects to find oil reserves.

    C) A tourist purchasing foreign currency to spend on a holiday abroad.

    D) A company signing an agreement with a wholesaler to distribute its products in foreign markets.

    Correct Answer: B

    Solution :

    The energy company will own and control the territory and the oil reserves it contains.


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