Question
General Knowledge Question on International trade
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
A
FII helps bring better management skills and technology while FDI only bring capital
B
FII helps in increasing capital availability in general, while FDI only targets specific sectors
C
FDI flows only into secondary markets while FII targets primary markets
D
FII is considered to be more stable than FDI
Answer
FII helps in increasing capital availability in general, while FDI only targets specific sectors
Explanation
Solution
The correct option is (B): FII helps in increasing capital availability in general, while FDI only targets specific sectors