Question : Which of the following is not a type of foreign direct investment?
Option 1: Joint venture
Option 2: Mergers and acquisitions
Option 3: Portfolio investment
Option 4: Greenfield investment
Correct Answer: Portfolio investment
Solution : The correct answer is (c) Portfolio investment
Portfolio investment is not a type of foreign direct investment (FDI). Portfolio investment refers to the investment in financial assets such as stocks, bonds, and other securities, with the primary objective of earning a return on investment. In portfolio investment, the investor does not seek to gain significant control or management influence over the invested company or business.
On the other hand, foreign direct investment (FDI) involves the establishment or acquisition of a lasting interest in an enterprise located in a foreign country. It implies a higher degree of control, management influence, and long-term involvement in the invested entity.
Option 1: Acquisition of a foreign subsidiary
Option 2: Joint venture with a foreign firm
Option 3: Greenfield investment in a foreign country
Option 4: Purchase of foreign bonds
Question : Which of the following is not a type of capital flow?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: international borrowing
Option 4: Merchandise trade
Question : Which of the following is not a type of capital account transaction?
Option 4: Import of goods
Question : Which of the following is not a type of financial account transaction?
Option 4: Export of goods and services
Option 4: Import of goods and services
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