Question

We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, please consider the following.
Which statement is more suitable for this statement ?

• A. FDI brings in latest technology
• B. FDI does not involve large outflow
• C. FDI improves efficiency of the economy
• D. None of the above

Answer 1

The correct option is A FDI brings in latest technology

We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, FDI brings in latest technology is the more suitable for this statement. Foreign Direct Investment plays a crucial role in growth dynamics of an economy.It serves the interest of the foreign investors as well as look after the long-term financial interest of the investors.