Question

Discuss the merits of foreign direct investment, portfolio investment and short term investment.

30 Oct 2021
Answer :
Word Count : 433

FDI or Foreign Direct Investment is considered as a form of investment that earns interest in enterprises which function outside of the domestic territory of the investor. FDI requires a business association between a parent company and its foreign subsidiary. Foreign direct business relationships give rise to multinational corporations.

For an investment to be regarded as an FDI, the parent firm needs to have at least 10% of the ordinary shares of its ________ _________ _________ __________ ___ ____.
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