Subject: “BoP,FDI,FPI,External Financing”

With reference to Government of India’s decisions regarding Foreign Direct Investment (FDI) during the year 2001-02, consider the following statements:
1. Out of the 100% FDI allowed by India in a tea sector, the foreign firm would have to disinvest 33% of the equity in favour of an Indian Partner within four years.
2. Regarding the FDI in print media in India, the single largest Indian shareholder should have a holding higher than 26%.
Which of these statements is/are correct?

A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?

Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which of the following statements best represents an important difference between the two?

Which of the following would include Foreign Direct Investment in India?
1. Subsidiaries of companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment

With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?

Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India ?