Which of the following would be an example of foreign direct investment from India to
Taiwan?
(A) An Indian bank buys bonds issued by a Taiwan computer manufacturer
(B) An Indian car manufacturer enters into a contract with a Taiwan firm for the latter
to make and sell it spark plugs
(C) Microsoft hires a Taiwanese computer programmer to debug some software
for it
(D) Mr. Ram Manohar (an Indian citizen) sets up an electronics firm in Taipei
Answers
Answer:
C is the answer of your question
Answer:
An Indian car manufacturer enters into a contract with a Taiwan firm for the latter is an example for foreign direct investment from India to Taiwan.
Explanation:
When a firm acquires majority ownership in a company in another nation, this is referred to as foreign direct investment (FDI).
With FDI, foreign businesses are actively involved in regular operations in the host nation. This indicates that they are contributing more than just money; they are also bringing technology, knowledge, and skills.
An investor establishes international business activities or acquires foreign business assets, including acquiring ownership or controlling stake in a foreign company, in general.
The majority of foreign direct investments are made in open economies with a competent labour force and promising futures. FDIs offer skills, technology, and knowledge in addition to money.