Both Foreign Direct Investment (FDI) and Foreign Institution

Economics

207

M: +2.00/-0.33

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?

I.A.S. (Pre), 2011

[External Sector - Trade, FDI, Debt]

FII helps bring better management skills and technology, while FDI only brings in capital

FII helps in increasing capital availability in general, while FDI only targets specific sectors

FDI flows only into the secondary market, while FII targets primary market

FII is considered to be more stable than FDI

EXPLANATION

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