UPSC Exam > UPSC Videos > Indian Economy (Prelims) by Shahid Ali > Foreign Direct Investment - Economics, UPSC IAS Exam Preparation
Foreign Direct Investment - Economics, UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
|
36 videos|62 docs|78 tests
|
FAQs on Foreign Direct Investment - Economics, UPSC IAS Exam Preparation Video Lecture - Indian Economy (Prelims) by Shahid Ali
| 1. What is foreign direct investment (FDI)? |  |
Ans. Foreign direct investment (FDI) refers to the investment made by a company or individual from one country into a business or project located in another country. It involves the direct ownership or control of the assets in the foreign country, such as establishing a subsidiary, acquiring shares of a foreign company, or setting up a joint venture.
| 2. What are the benefits of foreign direct investment? | |
Ans. Foreign direct investment brings several benefits to both the host country and the investing company. For the host country, FDI can lead to increased employment opportunities, transfer of technology and skills, infrastructure development, and economic growth. It also helps in attracting more investments and creating a favorable business environment. For the investing company, FDI allows access to new markets, resources, and technologies, as well as the potential for higher profits and diversification.
| 3. What are the types of foreign direct investment? | |
Ans. There are two main types of foreign direct investment: horizontal and vertical. Horizontal FDI refers to the investment in the same industry abroad as the one the company operates in domestically. It aims to expand the company's market share or gain competitive advantage. Vertical FDI, on the other hand, involves investing in different stages of the production process, either upstream or downstream. It allows companies to control the supply chain, reduce costs, or access key inputs.
| 4. What factors influence foreign direct investment? | |
Ans. Several factors influence foreign direct investment decisions. These include political stability, economic conditions, legal and regulatory framework, market size and potential, infrastructure, labor availability and cost, tax policies, intellectual property protection, trade barriers, and ease of doing business. Investors also consider factors like the quality of institutions, corruption levels, and cultural compatibility when deciding to invest in a foreign country.
| 5. How does foreign direct investment impact the economy? | |
Ans. Foreign direct investment has a significant impact on the economy of the host country. It can stimulate economic growth by attracting capital, technology, and managerial expertise. FDI often leads to job creation, skill development, and technology transfer, which can enhance productivity and competitiveness. It also contributes to increased trade, export growth, and the development of local industries. However, the extent of these impacts depends on factors such as the sectoral composition of FDI, the quality of institutions, and the level of integration with the local economy.
Related Exams
About this Video
|
4.80/5 Rating |
|
Dec 21, 2024 Last updated |
Video Description: Foreign Direct Investment - Economics, UPSC IAS Exam Preparation for UPSC 2024 is part of Indian Economy (Prelims) by Shahid Ali preparation.
The notes and questions for Foreign Direct Investment - Economics, UPSC IAS Exam Preparation have been prepared according to the UPSC exam syllabus.
Information about Foreign Direct Investment - Economics, UPSC IAS Exam Preparation covers all important topics for UPSC 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Foreign Direct Investment - Economics, UPSC IAS Exam Preparation.
Introduction of Foreign Direct Investment - Economics, UPSC IAS Exam Preparation in English is available as part of our Indian Economy (Prelims) by Shahid Ali for UPSC & Foreign Direct Investment - Economics, UPSC IAS Exam Preparation in
Hindi for Indian Economy (Prelims) by Shahid Ali course. Download more important topics related with notes, lectures and mock test series for
UPSC Exam by signing up for free.
Description
Video Lecture & Questions for Foreign Direct Investment - Economics, UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali - UPSC full syllabus preparation | Free video for UPSC exam to prepare for Indian Economy (Prelims) by Shahid Ali.
Information about Foreign Direct Investment - Economics, UPSC IAS Exam Preparation
Here you can find the meaning of Foreign Direct Investment - Economics, UPSC IAS Exam Preparation defined & explained in the simplest way possible.
Besides explaining types of Foreign Direct Investment - Economics, UPSC IAS Exam Preparation theory, EduRev gives you an ample number of questions to practice Foreign Direct Investment - Economics, UPSC IAS Exam Preparation tests,
examples and also practice UPSC tests.
|
36 videos|62 docs|78 tests
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,Exam
,Previous Year Questions with Solutions
,past year papers
,Viva Questions
,ppt
,Free
,practice quizzes
,shortcuts and tricks
,study material
,Sample Paper
,Summary
,UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,mock tests for examination
,UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,Extra Questions
,Important questions
,Foreign Direct Investment - Economics
,Foreign Direct Investment - Economics
,Semester Notes
,video lectures
,Foreign Direct Investment - Economics
,MCQs
,Objective type Questions
;
Study Foreign Direct Investment - Economics, UPSC IAS Exam Preparation on the App
Students of UPSC can study Foreign Direct Investment - Economics, UPSC IAS Exam Preparation alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Foreign Direct Investment - Economics, UPSC IAS Exam Preparation,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Foreign Direct Investment - Economics, UPSC IAS Exam Preparation is prepared as per the latest UPSC syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup