Growth of MNCs

Q.

What are the disadvantages of the global capital market?

Q. Investment in which of the following can be termed as foreign direct investment?

1. Buying new land
2. Buying shares
3. Setting up factories
4. Buying machinery

Q. Which of the following statements shows the difference between foreign direct investment (FDI) and capital market?

1. FDI allows investors to buy shares of companies, whereas the capital market offers ownership of business.
2. FDI allows investors to own asset or ownership of business, whereas the capital market allows one to buy share.
3. FDI avails investment from individuals, whereas the capital market loans from bank.
4. FDI allows for domestic investors, whereas the capital market allows for foreign investors only.