Consider the following statements in the context of the difference between Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI):
1. While FDI investors assume an active role in the management of the enterprises, FPI investors play a passive role.
2. While FDI investors invest in financial and non-Foreign Trade financial assets, the FPI investors invest in financial assets only.
3. While the repatriation of the FDI is difficult, the FPI investment can have overnight repatriation.
Which of the above statement(s) is/are correct?
Important Questions on Foreign Trade
Which of the following would include Foreign Direct Investment in India?
1. Subsidiaries of foreign companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment
Select the correct answer using the codes given below:
Consider the following statements:
1. Most of India's external debt is owed by governmental entities.
2. All of India's external debt is denominated in US dollars.
Which of the statements given above is / are correct?
