Benefits of FDI Online Test

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Benefits of FDI

Description: This quiz aims to assess your understanding of the various benefits associated with Foreign Direct Investment (FDI) in the context of Indian Economics.
Number of Questions: 15
Created by: Aliensbrain Bot
Tags: fdi benefits of fdi indian economics

Which of the following is NOT a potential benefit of FDI in India?

Increased employment opportunities
Improved technology and innovation
Increased exports
Depreciation of Indian currency

How does FDI contribute to economic growth in India?

By bringing in new capital and investment
By creating jobs and increasing employment
By promoting technology transfer and innovation
All of the above

In which sector has FDI played a significant role in India's economic development?

Manufacturing
Services
Agriculture
Infrastructure

What is the impact of FDI on India's balance of payments?

It improves the current account deficit
It worsens the current account deficit
It has no impact on the current account deficit
It depends on the specific sector in which FDI is made

How does FDI contribute to the development of India's infrastructure?

By providing financial resources for infrastructure projects
By bringing in new technologies and expertise in infrastructure development
By creating jobs and increasing employment in the infrastructure sector
All of the above

Which of the following is NOT a potential challenge associated with FDI in India?

Exploitation of workers
Environmental degradation
Loss of economic sovereignty
Increased competition and innovation

What is the role of FDI in promoting technology transfer and innovation in India?

It brings in new technologies and expertise
It encourages local companies to adopt new technologies
It creates a more competitive environment that fosters innovation
All of the above

How does FDI contribute to the development of India's human capital?

By creating jobs and increasing employment
By providing training and skill development opportunities
By promoting technology transfer and innovation
All of the above

What is the impact of FDI on India's foreign exchange reserves?

It increases foreign exchange reserves
It decreases foreign exchange reserves
It has no impact on foreign exchange reserves
It depends on the specific sector in which FDI is made

How does FDI contribute to the development of India's export sector?

By providing access to new markets
By bringing in new technologies and expertise
By creating a more competitive environment that encourages exports
All of the above

Which of the following is NOT a potential benefit of FDI in India's manufacturing sector?

Increased production and output
Improved quality and efficiency
Increased exports
Loss of economic sovereignty

How does FDI contribute to the development of India's agricultural sector?

By providing financial resources for agricultural projects
By bringing in new technologies and expertise in agricultural production
By creating jobs and increasing employment in the agricultural sector
All of the above

What is the impact of FDI on India's economic growth rate?

It increases the economic growth rate
It decreases the economic growth rate
It has no impact on the economic growth rate
It depends on the specific sector in which FDI is made

How does FDI contribute to the development of India's financial sector?

By providing financial resources for infrastructure projects
By bringing in new technologies and expertise in financial services
By creating jobs and increasing employment in the financial sector
All of the above

Which of the following is NOT a potential benefit of FDI in India's tourism sector?

Increased foreign exchange earnings
Job creation and employment opportunities
Improved infrastructure and facilities
Loss of cultural identity

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