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Question

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

A
Buying new land
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B
Buying shares
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C
Setting up factories
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D
Buying machinery
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Solution

The correct option is D Buying machinery
Foreign direct investment (FDI) is cross-border investment in which investors gain ownership of certain assets or the business operation. Through FDI, money is invested in buying new land, setting up factories, and buying machinery.

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