Question
If the net foreign investment inflows for the year 1997
were to grow by 20% and if the proportion of inflows was to remain the same as in case of the approvals for the year 1996, what would be the foreign investment inflows from NAFTA (in US $ Mn.) If NAFTA got 800 inflow in 1996? Directions : Refer to the graphs given below and answer the items that follow:Solution
Net foreign investment in flows for 1996 = 2000 Net foreign investment in flows for 1997 increased by 20% =1.2*2000=2400 Proportion of in flows with respect to approvals in 1996 = (2000/8000)*100 = 25% or 1/4 As per given proportion is same in the year 1997 with respect to 1996. So,foreign investment approvals in 1997= 4 * 2400 =9600 Now, NAFTA got $ 700mn in 1996 That is 800/2000)*100 = 40% So,in1997 it got 40% of 2400 = 960
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