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Which statement best explains Foreign direct investment?

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Question ID #25724 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Globalization Sectional Test 2026 Medium

Which statement best explains Foreign direct investment?

Correct Answer: D. Investment involving lasting interest and significant influence in an enterprise abroad
Foreign direct investment: Investment involving lasting interest and significant influence in an enterprise abroad

Question: Which statement best explains Foreign direct investment?

A. Relocating business activities to another country

B. Reduction of tariffs and non-tariff barriers to international trade

C. Process through which countries coordinate or combine economic policies and markets

D. Investment involving lasting interest and significant influence in an enterprise abroad

Correct Answer: D. Investment involving lasting interest and significant influence in an enterprise abroadForeign direct investment: Investment involving lasting interest and significant influence in an enterprise abroad

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Which statement best explains Foreign direct investment? - MCQ Explanation

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Correct answer: D. Investment involving lasting interest and significant influence in an enterprise abroad