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International capital flows have been uncertain and volatile, causing exchange rate and balance of payment crises. Among the various sources of external capital available to India which source is most preferable one? 
  • a)
    Foreign Institutional Investment 
  • b)
    Portfolio Investment 
  • c)
    External Commercial Borrowing 
  • d)
    Foreign Direct Investment
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
International capital flows have been uncertain and volatile, causing ...
FDI is one of the reliable type of investment. FDI investment setup business in an economy, provide jobs and increase economic activities.
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International capital flows have been uncertain and volatile, causing exchange rate and balance of payment crises. Among the various sources of external capital available to India which source is most preferable one?a)Foreign Institutional Investmentb)Portfolio Investmentc)External Commercial Borrowingd)Foreign Direct InvestmentCorrect answer is option 'D'. Can you explain this answer?
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