Question
A foreign manufacturer builds a plant in India primarily to sell its products to Indian consumers and respond to local demand. Which FDI motive is illustrated?
The correct answer is
Market seeking
The stated motive is to serve customers in the host-country market, so the investment is market-seeking. Resource-seeking targets inputs, efficiency-seeking reorganises production for cost advantages, and export-oriented production primarily serves foreign markets.
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Important Questions from External Sector and Currency Exchange rate
- At the Eighth Session of the International Solar Alliance (ISA) Assembly held at Bharat Mandapam in October 2025, which of the following initiatives was launched to address solar waste and promote circularity in the solar sector?
- Which theory is used to make long-term predictions about exchange rates in a flexible exchange rate system?
- The reduction in the external value of the domestic currency is called:
- Under a freely exchange rate system, a deficit in a Nation’s Balance of Payments Account is automatically corrected by
- MNCs can help the developing countries to:
(a) Obtain foreign technology and innovative methods of increasing productivity
(b) Employ rural unemployed labour
(c) Finance a savings gap or balance of payments deficit
(d) Generate appropriate technology by adapting existing processes
Choose the correct answer from the code given below :
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