Which one of the following is considered as non-debt creating foreign investment inflow?
A
External assistance
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B
Foreign Direct Investment
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C
Borrowing from the IMF
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D
Commercial borrowings
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Solution
The correct option is C Foreign Direct Investment Foreign Direct Investment (FDI): Investment in a country by a foreign
firm called Multinational Corporation which takes the form of as much
ownership of a company as necessary to guarantee control over all its
activities.