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Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) are distinct in terms of

  1. A
    FDI brings capital, technology and management and FII brings capital.
  2. B
    FDI targets specific sectors and FII helps in increasing foreign capital availability.
  3. C
    FII is considered more stable than FDI.
  4. D
    FII targets both primary and secondary market while FDI targets only primary market.

Solution & Step-by-step Explanation

Foreign Direct Investment (FDI) refers to long-term physical investments in enterprise assets, bringing non-debt financial capital along with manufacturing technology, infrastructure, and active corporate management. Foreign Institutional Investment (FII) is portfolio investment targeting financial assets like stocks or bonds, bringing purely mobile capital.

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Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) are distinct in terms of
A
FDI brings capital, technology and management and FII brings capital.
B
FDI targets specific sectors and FII helps in increasing foreign capital availability.
C
FII is considered more stable than FDI.
D
FII targets both primary and secondary market while FDI targets only primary market.

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