Answer: Option C - Investment in physical assets like factories and infrastructure in a foreign country, leading to managerial control.
Explanation:
- Foreign Direct Investment (FDI) involves long-term investment by a foreign entity in a country’s businesses, typically through physical assets like factories, infrastructure, or acquisitions, leading to managerial control.
- Unlike Foreign Portfolio Investment (FPI), which involves passive holdings in financial markets, FDI brings technology, expertise, and economic growth.
Countries attract FDI through policy incentives, ease of doing business, and economic stability to boost industrial development and job creation
Answer: Option C - Investment in physical assets like factories and infrastructure in a foreign country, leading to managerial control.
Explanation:
- Foreign Direct Investment (FDI) involves long-term investment by a foreign entity in a country’s businesses, typically through physical assets like factories, infrastructure, or acquisitions, leading to managerial control.
- Unlike Foreign Portfolio Investment (FPI), which involves passive holdings in financial markets, FDI brings technology, expertise, and economic growth.
Countries attract FDI through policy incentives, ease of doing business, and economic stability to boost industrial development and job creation