Q279
Both Foreign Direct Investment (FDI) and Foreign Portfolio Investor (FPI) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
A.
FPI helps bring better management skills and technology, while FDI only brings in capital
B.
FPI helps in increasing capital availability in general, while FDI only targets specific sectors
AnswerC.
FDI flows only into the secondary market, while FPI targets primary market
D.
FPI is considered to be more stable than FDI
Answer: Option B
Solution
Answer: Option B
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