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Foreign Institutional Investors (FII) and Foreign Direct Investment (FDI) are both related to investing…

FII expands the availability of financial capital, whereas FDI is directed towards particular business activities and sectors. FDI can also bring managerial involvement and…

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Foreign Institutional Investors (FII) and Foreign Direct Investment (FDI) are both related to investing in a country. Which of the following sentences best exemplifies a key distinction between the two?

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Answer and explanation

Correct answer B

FII expands the availability of financial capital, whereas FDI is directed towards particular business activities and sectors. FDI can also bring managerial involvement and productive capacity, while portfolio investment does not ordinarily involve control of the enterprise.

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  • West Bengal SET (WB SET)

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