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Question : Which of the following is not an example of a capital inflow?

Option 1: Foreign direct investment

Option 2: Purchase of domestic assets by foreigners

Option 3: Repatriation of profits by domestic firms from foreign operations

Option 4: foreign aid received by a country


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Repatriation of profits by domestic firms from foreign operations


Solution : The correct answer is (c) Repatriation of profits by domestic firms from foreign operations

Repatriation of profits by domestic firms from foreign operations is not an example of a capital inflow. It refers to the transfer of profits earned by domestic firms from their foreign subsidiaries or operations back to the home country. This represents a capital outflow rather than an inflow.

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