question_answer

Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?

A)  FII helps bring better management skills and technology, while FDI only brings in capital

B)  FII helps in increasing capital availability in general, while FDI only targets specific sectors

C)  FDI flows only into the secondary market, while FII targets primary market

D)  FII is considered to be more stable than FDI