n NISM Certifications
XV NISM Series XV
Medium

Foreign Direct Investment (FDI) is encouraged by developing economies because it:

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Brings in new products and services

  2. B

    Brings in new managerial skills

  3. C

    Provides access to traditional technologies

  4. Both A and B

    Correct answer

Why this is the answer

FDI brings foreign products, services, and managerial expertise to the host economy, fostering modernization and competitiveness. Traditional technologies are usually already available locally.

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