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Question
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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?
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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?
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Solution
The correct option is A International Capital Investment
When foreign investors buy land, building, or invest in a domestic company, it is known as foreign capital investment. 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 the assets like shares and bonds belonging to a different country, it is known as foreign institutional investment or FII.
When foreign investors buy land, building, or invest in a domestic company, it is known as foreign capital investment. 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 the assets like shares and bonds belonging to a different country, it is known as foreign institutional investment or FII.
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