Which of the following scenarios docs not give rise to foreign direct investment?

CA Foundation · Business Economics · PYQS · May 2026
Which of the following scenarios docs not give rise to foreign direct investment?
(A) A. Acquiring a controlling interest in an existing foreign company
(B) B. External commercial borrowing
(C) C. Joint venture with a foreign company
(D) D. Merger and acquisition

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. External commercial borrowing

Topics: International Trade

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