(i) increase in the total volume of investment in the economy.
(ii) improving production technology.
(iii) increase in access to world markets.
(iv) generating faster industrial growth.
Select the correct answer from the codes given below :
Understanding Foreign Direct Investment Aims
Foreign Direct Investment (FDI) refers to an investment made by a company or individual from one country into business interests located in another country. The primary objectives and outcomes of FDI are multifaceted.
Key Aims of FDI
- Increase in Investment Volume: FDI directly injects capital into the host economy, thereby increasing the overall investment. This addresses statement (i).
- Improving Production Technology: Foreign investors often bring advanced technologies, processes, and management expertise, leading to technological upgrades in the host country. This addresses statement (ii).
- Expanding Market Access: FDI can facilitate access to international markets through the global networks and distribution channels of the investing company. This addresses statement (iii).
- Accelerating Industrial Growth: By combining capital infusion, technological advancements, and enhanced market reach, FDI stimulates overall economic activity and promotes faster industrial development. This addresses statement (iv).
Conclusion
All the listed points - increase in total investment volume, improving production technology, increase in access to world markets, and generating faster industrial growth - are significant aims and consequences of Foreign Direct Investment.
Therefore, the correct option includes all four statements (i), (ii), (iii), and (iv).
Important Questions from International Trade
Consider the following statements about the international financial sources :
I. A Global Depository Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign country.
II. A GDR is very similar to American Depository Receipt (ADR).
Select the correct option.
Which of the following documents is not required for obtaining export license?
_________ was set up with prime objective of professionalizing the country’s foreign trade management by providing training, research and data dissemination.
Which one of the following does not fall within the ambit of WTO operations ?
The following statements relate to Restrictive Trade Practices (RTP). Choose the correct code for the statements being correct or incorrect.
Statement I: Often the low price is the result of the predatory pricing strategy; prompting selling at prices below cost.
Statement II: This is done with an aim to drive out existing competitors because predatory pricing is a restrictive trade practice.
