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Question

What do we call an investment made by a firm or an individual in one country in business interests in another country?

A
Foreign deposit investment
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B
Provident fund
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C
Foreign direct investment
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D
Foreign direct interest
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Solution

The correct option is C Foreign direct investment
Foreign direct investment (FDI) refers to an investment made by a firm or an individual of one country in the business interests in another country. The FDI Policy of 2012 allowed foreign companies to set up retail shops to sell goods in India. In recent times, India has been witnessing a growth in FDIs.

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