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

  • question_answer
          Which of the following is correct about 'Foreign direct investment' (FDI)?
    1. Through FDI a company buys a company in the target country.
    2. Through PDI a company expand operations of an existing business in the target country.
    3. FDI is an investment in the securities of another country such as stocks and bonds.
    4. FDI is an investment directly into production in a country by a company located in another country.

    A) 1 and 2                        

    B) 1, 2 and 4

    C) 1, 2 and 3        

    D) 1, 2, 3 and 4

    Correct Answer: B


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