economics
- Finance
FPI AND FDI
FPI AND FDI Deep Dive into FPI and FDI Both Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) are channels for international capital flow, but they differ significantly in their nature, objectives, and impact. Here’s a detailed breakdown: Foreign Portfolio Investment (FPI) Focus: Financial Assets Stocks, bonds, mutual funds, ETFs of foreign companies American Depositary Receipts (ADRs)/Global Depositary Receipts (GDRs) – represent shares of foreign companies traded on local exchanges Investment Style: Passive Investors don’t actively manage foreign companies or assets…
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Investment Definition Economics
Investment Definition Economics In economics, investment has a specific meaning compared to how it’s used in general finance. Here’s the breakdown: Economic Definition of Investment In economics, investment refers to the addition to the nation’s capital stock over a specific period, usually a year. This capital stock refers to physical assets used to produce goods and services. Examples include: Buildings and machinery Infrastructure like roads and bridges Software and information technology Inventories of raw materials and finished products Essentially,…
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