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Why is Foreign Direct Investment (FDI) preferred over Foreign Portfolio Investment (FPI)?
  • a)
    FDI generates higher returns for investors.
  • b)
    FDI brings better management and technology transfer.
  • c)
    FDI is more liquid and can be easily withdrawn.
  • d)
    FDI requires less regulatory approval.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Why is Foreign Direct Investment (FDI) preferred over Foreign Portfoli...
FDI is preferred over FPI because it brings not only capital but also better management practices and technology transfer. FDI tends to be more stable and contributes to the overall growth of the economy.
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Why is Foreign Direct Investment (FDI) preferred over Foreign Portfolio Investment (FPI)?a)FDI generates higher returns for investors.b)FDI brings better management and technology transfer.c)FDI is more liquid and can be easily withdrawn.d)FDI requires less regulatory approval.Correct answer is option 'B'. Can you explain this answer?
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