Question

70
Business ECONOMICS
4.
Which of the following is not one of the benefits of FDI:​

Answer 1

Explanation:

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Answer 2

Answer:

The correct answer is : Domestic businesses.

FDI does not promote domestic businesses.

Explanation :

• An investment made into a company in another nation by a person or an organisation is known as foreign direct investment, or FDI for short.
• FDI normally takes place when investors invest outside of their home country and create overseas business operations or buy foreign business assets for a company.
• With FDI, a foreign business is actively involved in routine activities in another nation.
• FDI also offers knowledge, technology, skills, and employment in addition to money.
• A foreign country receives money in its own currency as a form of foreign direct investment (FDI).
• Because FDI concentrates on investments outside of the nation of origin of the investor, it occasionally disrupts domestic businesses that lack investment.
• FDI encourages broad-based economic growth in India. It is a country's main source of foreign investment and growing earnings.
• It frequently leads to the opening of factories in the investing nation, where local resources, including materials and labour, are used.
• Based on the employees' ability levels, this process is repeated. People lead better lives and see an increase in their level of life as a result of widespread employment.
• Such individuals also begin paying taxes, which are then used to further invest in the improvement of the country.

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