UPSC Exam > UPSC Questions > Consider the following statements:Statement-...
Start Learning for Free
Consider the following statements:
Statement-I:
FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.
Statement-II:
FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.
Which one of the following is correct in respect of the above statements?
FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.
Statement-II:
FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.
Which one of the following is correct in respect of the above statements?
- a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- b)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- c)Statement-I is correct, but Statement-II is incorrect
- d)Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following statements:Statement-I:FPI does not offer dire...
Statement-I correctly distinguishes between FPI and FDI, highlighting the difference in control and ownership levels. FDI, as stated in Statement-II, indeed involves activities like management participation, joint ventures, and technology transfer. Hence, both statements are accurate, and Statement-II provides additional relevant information that explains Statement-I effectively.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements:Statement-I:FPI does not offer dire...
Understanding FPI and FDI
Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) are two essential forms of investment that serve different purposes and involve varying levels of control and ownership.
Statement-I Analysis
- FPI generally involves investing in financial assets such as stocks and bonds without seeking control over the companies in which they invest.
- In contrast, FDI requires a significant ownership stake (typically 10% or more) in a company, allowing the investor to have substantial influence or control over business operations.
Statement-II Analysis
- FDI is characterized by not just financial investment, but also active participation in the management of the entity.
- It often includes forming joint ventures, where local and foreign businesses collaborate, as well as transferring technology and expertise, enhancing the operational capacity of the local firm.
Conclusion
- Both statements are correct:
- Statement-I accurately describes the lack of direct control in FPI versus the ownership and control in FDI.
- Statement-II elaborates on the nature of FDI, emphasizing its involvement in management and technology transfer.
Thus, the correct answer is option 'A': Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I. Understanding these distinctions is crucial for recognizing the strategic implications of different investment types, especially in a globalized economy.
Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) are two essential forms of investment that serve different purposes and involve varying levels of control and ownership.
Statement-I Analysis
- FPI generally involves investing in financial assets such as stocks and bonds without seeking control over the companies in which they invest.
- In contrast, FDI requires a significant ownership stake (typically 10% or more) in a company, allowing the investor to have substantial influence or control over business operations.
Statement-II Analysis
- FDI is characterized by not just financial investment, but also active participation in the management of the entity.
- It often includes forming joint ventures, where local and foreign businesses collaborate, as well as transferring technology and expertise, enhancing the operational capacity of the local firm.
Conclusion
- Both statements are correct:
- Statement-I accurately describes the lack of direct control in FPI versus the ownership and control in FDI.
- Statement-II elaborates on the nature of FDI, emphasizing its involvement in management and technology transfer.
Thus, the correct answer is option 'A': Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I. Understanding these distinctions is crucial for recognizing the strategic implications of different investment types, especially in a globalized economy.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?
Question Description
Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?.
Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements:Statement-I:FPI does not offer direct control, whereas FDI involves significant ownership, typically defined as owning 10% or more of a company's shares.Statement-II:FDI often includes activities such as management participation, joint ventures, and the transfer of technology and expertise.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup