The question asks for the full form of the acronym FDI. This is a common term in economics and international business, frequently encountered in competitive exams. The approach is to recall the standard definition of FDI.
B) Foreign Direct Investment is the correct full form of FDI. It signifies a long-term investment by a resident entity of one economy in an enterprise resident in another economy, implying a lasting interest and control.
The question asks to identify the international body responsible for the given definition of Foreign Direct Investment (FDI). This requires knowledge of the specific definitions and roles of major international economic organizations.
B) IMF (International Monetary Fund). The definition of FDI provided in the question is precisely the one used by the International Monetary Fund (IMF) in its Balance of Payments Manual (BPM), which serves as a global standard for compiling international investment statistics.
The question asks about the minimum percentage of investment that qualifies as Foreign Direct Investment (FDI) in a listed Indian company, according to RBI definitions. This is a specific regulatory definition that candidates for competitive exams should be aware of.
B) 10 percent — As per the RBI's definition, an investment of 10 percent or more of the post-issue paid-up equity capital (on a fully diluted basis) in a listed Indian company by a non-resident is classified as Foreign Direct Investment (FDI).
The question asks to identify which of the given options is NOT typically associated with Foreign Direct Investment (FDI) in a host country. We need to understand the fundamental characteristics and benefits of FDI to distinguish it from other forms of foreign investment.
C) Short-term speculative portfolio gains — FDI is characterized by long-term investment, direct control, and the creation of productive assets. Short-term speculative gains are associated with portfolio investments, which are distinct from FDI.
The question asks why Foreign Direct Investment (FDI) is considered a channel of progress and development. We need to identify the key contributions of FDI that lead to such outcomes.
Correct Option: B) Financial resources and technology
The question asks to define "Greenfield FDI." To answer this, we need to understand the different types of Foreign Direct Investment (FDI) and what distinguishes a Greenfield investment from other forms.
Correct Option: B) Setting up entirely new facilities/operations from the ground up in the host country
This option perfectly matches the definition of Greenfield FDI, where a foreign investor builds new production facilities, offices, or other operational infrastructure from scratch in a host country. This type of investment creates new jobs and often introduces new technology and expertise.