Question

    Which of the following is/are potential benefits of

    incoming Foreign Direct Investments (FDI) in a country? 1.    Human resource development 2.    Transfer of technology 3.    Increase in exports Select the correct answer using the code given below:
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 3 only Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    FDI allows the transfer of technology—particularly in the form of new varieties of capital inputs—that cannot be achieved through financial investments or trade in goods and services. Human Capital refers to the knowledge and competence of the workforce. Many of these products developed by FDI led industries have global markets and can further assist FDI investors in boosting their exports from other countries.

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