Question

What are the main differences between Foreign Direct Investment and Foreign Portfolio Investment.

Typed please

Answer 1

Answer-

1) FDI (foreign direct investment) refers to the investment made by the foreign investors to obtain substantial interest in a foreign company whereas FPI ( foreign portfolio investment) means where international investor invests in another country i.e. investment in the financial asset.

2) FDI role of investors are active Whereas FPI role of investors are passive.

3) FDI degree of control is high Whereas FPI degree of control is very less.

4) FDI is for long term Whereas FPI Is short term.

5) FDI management of projects is efficient Whereas FPI management of projects is comparatively less efficient.

6) FDI investment in physical assets Whereas FPI investment in financial assets.

7) FDI entry

Answer-

1) FDI (foreign direct investment) refers to the investment made by the foreign investors to obtain substantial interest in a foreign company whereas FPI ( foreign portfolio investment) means where international investor invests in another country i.e. investment in the financial asset.

2) FDI role of investors are active Whereas FPI role of investors are passive.

3) FDI degree of control is high Whereas FPI degree of control is very less.

4) FDI is for long term Whereas FPI Is short term.

5) FDI management of projects is efficient Whereas FPI management of projects is comparatively less efficient.

6) FDI investment in physical assets Whereas FPI investment in financial assets.

7) FDI entry and exit is difficult Whereas FPI entry and exit is relatively easy.

and exit is difficult Whereas FPI entry and exit is relatively easy.

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