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Banking Term: Foreign Direct Investment

Feb 19, 2015 14:49 IST

    Foreign Direct Investment is an investment made by company of one country in another country on operating business, physical capital assets including building, machinery, and equipments. Generally, FDI includes mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations.

    Question: Which of the following is not true in context OF FDI?

    A. Foreign direct investment (FDI) is a controlling ownership in a business enterprise.

    B. FDI include Acquisitions and Mergers

    C. FDI arises when firms do not duplicate its home based activities

    D. None of these

    Ans. C

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