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

FDI brings in latest technology

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FDI does not involve large outflow

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FDI improves efficiency of the economy

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None of the above

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Solution

The correct option is A FDI brings in latest technology
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 other country. It is said to bring latest technology in the business.

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

The correct option is A FDI brings in latest technologyA foreign direct investment is an investment in the form of a controlling ownership in a business in one country by an entity based in other country. It is said to bring latest technology in the business.

The correct option is A FDI brings in latest technology
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 other country. It is said to bring latest technology in the business.