Foreign Direct Investment (FDI) CDS Questions

CDS Economy

Foreign Direct Investment (FDI) MCQ Questions


7.
Brownfield FDI is best described as investment that involves:
A.
Construction of a new plant on vacant land
B.
Merger with or acquisition of an existing enterprise in the host country
C.
Purchase of government bonds
D.
Portfolio investment in equities
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ANSWER :
B. Merger with or acquisition of an existing enterprise in the host country
8.
Which type of FDI generally creates more NEW employment and productive capacity in the host economy?
A.
Brownfield FDI
B.
Mergers and acquisitions
C.
Portfolio investment
D.
Greenfield FDI
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ANSWER :
D. Greenfield FDI
9.
Building a brand-new automobile manufacturing plant by a foreign company on vacant land in India is an example of:
A.
Brownfield FDI
B.
External commercial borrowing
C.
Foreign Portfolio Investment
D.
Greenfield FDI
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ANSWER :
D. Greenfield FDI
10.
A foreign firm acquiring a controlling stake in an already operating Indian pharmaceutical company is an example of:
A.
Greenfield FDI
B.
Sovereign lending
C.
Portfolio investment
D.
Brownfield FDI
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ANSWER :
D. Brownfield FDI
11.
In the brownfield pharmaceutical sector in India, what percentage of FDI is permitted through the automatic route?
A.
74 percent
B.
49 percent
C.
100 percent
D.
26 percent
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ANSWER :
A. 74 percent
12.
As per UNCTAD's World Investment Report, India has remained a top destination particularly for which kind of project investment?
A.
Greenfield projects
B.
Brownfield acquisitions only
C.
Portfolio inflows
D.
Short-term bank loans
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ANSWER :
A. Greenfield projects