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?
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.
Important Questions from External Sector and Currency Exchange rate
Consider the following :
1. Foreign currency convertible bonds
2. Foreign institutional investment with certain conditions
3. Global depository receipts
4. Non-resident external deposits
Which of the above can be included in Foreign Direct Investments?
What is the idea that a country should be self-sufficient and not participate in international trade called?
According to Harrod-Domar growth model for the full capacity use of capital and labour or for full employment it is necessary that
Consider the following statements:
(1) Hike in global oil prices can widen the Current Account Deficit (CAD) of India.
(2) Higher CAD can lead to depreciation of the currency.
Which among the above statements is/are correct?
Which of the following affect the pricing of a currency option?
(A) Spot exchange rate
(B) Exercise rate
(C) Foreign risk-free rate of return
(D) Domestic risk-adjusted rate
(E) Time to expiration
Choose the correct answer from the options given below:
