The table below shows the foreign direct investment (FDI) flowing out of each country as a percentage of its GDP.The table below shows the total FDI and FDI through Singapore received by China and India. All figures in that table are in billion dollars.Q. If Singapores GDP in 2003 was four times its value in 1995, what can be said about Singapores FDI investement in India from 1995 to 2003, as a percentage of its total FDI outflow for those years?a)Increased by less than 5 percentage pointsb)Decreasedc)Remained the samed)Increased by more than 5 percentage pointse)Cannot be determinedCorrect answer is option 'B'. Can you explain this answer?

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The table below shows the foreign direct investment (FDI) flowing out of each country as a percentage of its GDP.

The table below shows the total FDI and FDI through Singapore received by China and India. All figures in that table are in billion dollars.

Q. If Singapore’s GDP in 2003 was four times its value in 1995, what can be said about Singapore’s FDI investement in India from 1995 to 2003, as a percentage of its total FDI outflow for those years?

a)
Increased by less than 5 percentage points
b)
Decreased
c)
Remained the same
d)
Increased by more than 5 percentage points
e)
Cannot be determined

Correct answer is option 'B'. Can you explain this answer?

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The table below shows the foreign direct investment (FDI) flowing out ...

Assume Singapore’s GDP in 1995 to be 100 billion dollars.
FDI outflow from Singapore in 1995 = 41.8% of 100 = 41.8 billion dollars. FDI from Singapore to India in 1995 = 0.1 billion dollars. Required % = (0.1/41.8) x 100 = 0.24. The GDP of Singapore in 2003 was four times its value in 1995. Singapore’s GDP in 2003 was 400 billion dollars.
FDI outflow from Singapore in 2003 = 99.5% of 400 = 398 billion dollars. FDI from Singapore to India in 2003 = 0.6 billion dollars. Required % = (0.6/398) x 100 ⇒ 0.15. Hence, the percentage has decreased from 1995 to 2003.
Hence, option 2.

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The table below shows the foreign direct investment (FDI) flowing out of each country as a percentage of its GDP.The table below shows the total FDI and FDI through Singapore received by China and India. All figures in that table are in billion dollars.Q. If Singapores GDP in 2003 was four times its value in 1995, what can be said about Singapores FDI investement in India from 1995 to 2003, as a percentage of its total FDI outflow for those years?a)Increased by less than 5 percentage pointsb)Decreasedc)Remained the samed)Increased by more than 5 percentage pointse)Cannot be determinedCorrect answer is option 'B'. Can you explain this answer?

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