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In which sub account and on …

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In which sub account and on which side of balance of payment account will foreign investment in india be recorded? Give reason.

Posted by Mohammad Rustam 7 years, 8 months ago

CBSE > Class 12 > Economics

1 answers

Mohammad Rustam 7 years, 8 months ago

In capital account and on credit side of bop, will foreign investment in india be recorded. Foreign investment refers to the investment in the assets of a foreign country. By investing the govetnment and any residents of domestic country owns the control over the assets of the foreign country. Foreign investment cause an inflow of foreign exchange into the country. Thus it is recorded as pisitive item in the capital account of bop.

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