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Question : Which of the following is not a type of foreign direct investment?

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


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Purchase of foreign bonds


Solution : The correct answer is (d) Purchase of foreign bonds.

Foreign direct investment (FDI) refers to the investment made by a company or individual in a foreign country to establish a controlling interest in a business entity. It involves long-term and substantial investment in a foreign company or the establishment of a new business entity in a foreign country.

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