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    FDI FPI: Management Projects Are Efficiently

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    tuku
    FDI involves long-term ownership and management control of foreign companies, which allows for more efficient project management but is more difficult to sell off than FPI. FPI represents smaller stakes in foreign companies through instruments like stocks and bonds that are more liquid and easier to trade, coming from more diverse sources with larger and more volatile net inflows than FDI.

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    FDI FPI: Management Projects Are Efficiently

    Uploaded by

    tuku
    7 views1 page
    FDI involves long-term ownership and management control of foreign companies, which allows for more efficient project management but is more difficult to sell off than FPI. FPI represents smaller stakes in foreign companies through instruments like stocks and bonds that are more liquid and easier to trade, coming from more diverse sources with larger and more volatile net inflows than FDI.

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    FDI

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    FDI involves long-term ownership and management control of foreign companies, which allows for more efficient project management but is more difficult to sell off than FPI. FPI represents smaller stakes in foreign companies through instruments like stocks and bonds that are more liquid and easier to trade, coming from more diverse sources with larger and more volatile net inflows than FDI.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    7 views1 page

    FDI FPI: Management Projects Are Efficiently

    Uploaded by

    tuku
    FDI involves long-term ownership and management control of foreign companies, which allows for more efficient project management but is more difficult to sell off than FPI. FPI represents smaller stakes in foreign companies through instruments like stocks and bonds that are more liquid and easier to trade, coming from more diverse sources with larger and more volatile net inflows than FDI.

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    Management

    FDI

    FPI

    Projects are efficiently


    managed

    Projects are less efficiently managed

    Involved in management and No active involvement in management.


    Involvement - ownership control; longInvestment instruments that are more
    direct or term interest
    easily traded, less permanent and do not
    indirect
    represent a controlling stake in an
    enterprise.
    Sell off

    It is more difficult to sell off


    or pull out.

    It is fairly easy to sell securities and pull


    out because they are liquid.

    Tends to be undertaken by
    Multinational organisations

    Comes from more diverse sources e.g.a


    small company's pension fund or
    through mutual funds held by
    individuals; investment via equity
    instruments (stocks) or debt (bonds) of a
    foreign enterprise.

    Comes from

    Involves the transfer of nonfinancial assets


    What is
    e.g.technology and
    invested
    intellectual capital, in
    addition to financial assets.
    Stands for Foreign Direct Investment
    Volatility

    Having smaller in net


    inflows

    Only investment of financial assets.

    Foreign Portfolio Investment


    Having larger net inflows

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