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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)
    External Commercial Borrowing 
  • b)
    Portfolio Investment 
  • c)
    Foreign Institutional Investment 
  • 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)External Commercial Borrowingb)Portfolio Investmentc)Foreign Institutional Investmentd)Foreign Direct InvestmentCorrect answer is option 'D'. Can you explain this answer?
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