Business Studies

'FDI is an investment which a parent company makes in a foreign country. Where as FII is an investment made by an investor in the market of a foreign country'. State whether the statement is true or false.


ANSWER

True


SOLUTION
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 another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


TRUE/FALSE Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 197
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
By which of the following methods a Company Secretary can be removed from his post?
  • A. By passing a resolution in Board Meeting
  • B. By order of Registrar of Companies
  • C. By passing a resolution in Annual General Meeting
  • D. None of the above

Asked in: Business Studies - International Business


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
Which of the following can be treated as disadvantages of Franchising? 
  • A. There is a danger that the franchisee may start an identical business with slightly different brand name.
  • B. The franchiser's brand name and reputation may get tarnished if the franchisee is not able to maintain standards of quality and service.
  • C. There is a risk of trade secrets getting leaked out in the foreign market.
  • D. All of above

Asked in: Business Studies - International Business


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Single Correct Medium
International trade in goods and services is sometimes used as a substitute for all of the following except ___________.
  • A. international movements of capital
  • B. domestic production of different goods and services
  • C. international movement of labour
  • D. international movement of technology

Asked in: Business Studies - International Business


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
The parent company acquires full control over the foreign company by making 100 per cent investment in __________.
  • A. debentures
  • B. mutual funds
  • C. preference share capital
  • D. equity capital

Asked in: Business Studies - International Business


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
Internal trade differs from external trade in which of the following ways?
  • A. Nationality of buyers and sellers
  • B. Political system and risks
  • C. Mobility of factors of production
  • D. All of the above

Asked in: Business Studies - International Business


1 Verified Answer | Published on 18th 08, 2020

View Answer