'FDI is an investment which a parent company makes in a foreign country. Where as FII is an investment made by an investor in the market of a foreign country'. State whether the statement is true or false.
A
True
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B
False
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Solution
The correct option is A True A foreign direct investment is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.