Q. What is the primary objective of Foreign Portfolio Investment (FPI)?
Answer: Maximizing short-term profits
Notes: Foreign Portfolio Investment (FPI) primarily aims for short-term profits by investing in financial assets without exerting control over the companies. This contrasts with Foreign Direct Investment (FDI), where investors seek long-term benefits through direct control and ownership of physical assets, often leading to technology transfer and economic development in the host country.
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