Which of the following is NOT a form of foreign investment?a)Foreign Direct Investment (FDI)b)Foreign Portfolio Investment (FPI)c)Non-Concessional Assistanced)National Resource Investment (NRI)Correct answer is option 'D'. Can you explain this answer?

Question

Answer

Foreign Resource Investment (NRI) is NOT a form of foreign investment.
Foreign Direct Investment (FDI)
- FDI refers to the investment in a business or enterprise by a company located in another country.
- This type of investment involves establishing business operations or acquiring business assets in a foreign country.
Foreign Portfolio Investment (FPI)
- FPI involves investing in financial assets such as stocks and bonds of foreign companies.
- Unlike FDI, FPI does not provide the investor with control over the business operations of the company.
Non-Concessional Assistance
- Non-Concessional assistance refers to financial aid provided to developing countries on commercial terms.
- This type of assistance includes loans and grants that need to be repaid with interest, unlike concessional assistance which is provided on more favorable terms.
National Resource Investment (NRI)
- National Resource Investment (NRI) is not a recognized form of foreign investment.
- It does not represent a specific type of investment strategy or practice in the field of international finance.
In conclusion, Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), and Non-Concessional Assistance are all forms of foreign investment, while National Resource Investment (NRI) is not.

Answer

National Resource Investment (NRI) is not a recognized form of foreign investment. It should be Non-Resident Indian (NRI), which refers to individuals of Indian origin living abroad.

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