MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Impact of Globalisation

Delta Corpora...

Question

Delta Corporation, an international company, wants to invest in India. It can either take controlling ownership in a business entity in India or invest in assets like shares of Indian companies.

Which of the following terms will you use to explain the above venture?

A

International capital investment

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

International capital exchange

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Foreign exchange of capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Foreign capital investment

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Foreign capital investment
Foreign capital investment refers to the movement of money from one country to another for investment, trade, or any other business operation. When a company takes controlling ownership in a business entity in a company of another country, it is known as foreign direct investment or FDI. When a company invests in assets like shares and bonds belonging to a different country, it is known as foreign portfolio investment or FPI.

Suggest Corrections

thumbs-up

0

Similar questions

Q.  Delta Corporation, an international company, wants to invest in India. It can either take controlling ownership in a business entity in India or invest in assets like shares of an Indian company.

Which of the following terms explains the above example?

Q. However, it is possible that the non -resident entity may have a business connection with the resident Indian entity. In such a case, the resident Indian entity could be treated as Permanent Establishment of the non-resident entity. ___ During the last decade or so, India has seen a steady growth of outsourcing of business processes by non-residents or foreign companies to IT-enabled entities in India. Such entities are either branches or associated enterprises of the foreign enterprise or an independent India enterprise. The nonresident entity or foreign company will be liable to tax in India only if the IT-enabled BPO unit in India constitutes its Permanent Establishment.

Q. Delta Ltd., an American company, is operating in different locations of the world and planning to expand its business in India as well.

Which of the following advantages do you think the MNC can gain by investing in foreign countries?

Q. A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

Q. Mr. John is an American citizen who owns a big manufacturing company. Now, he wants to set up his business in India. Which of the following factor(s) should Mr. John consider for his new venture?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Let's Practice Part 1

ECONOMICS

Watch in App

explore_more_icon

Explore more

Impact of Globalisation

Standard X Economics

Join BYJU'S Learning Program

CrossIcon