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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

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B

International capital exchange

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C

Foreign exchange of capital

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D

Foreign capital investment

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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.

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