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Question

The direct investment provides the investor with a controlling interest in a foreign company. This is known as.

A
FDI
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B
MNC
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C
SEBI
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D
WTO
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Solution

The correct option is A FDI
Direct investment provides the investor a controlling interest in a foreign company. This is known as Foreign Direct Investment (FDI). Foreign direct investments are commonly made in open economies that offer a skilled workforce and above-average growth prospects for the investor, as opposed to tightly regulated marketplaces.

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