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Unit 27: FDI : Types and Issues

27.4 Key-Words Notes

1. Access Policy : Policies that govern the use of IMF resources by its members, including access
limits set in terms of members' quotas. The access policy, including annual and
cumulative limits, under the credit tranches and the Extended Fund Facility (EFF)
are reviewed each year. Access under other facilities also is reviewed periodically.
Access under the Supplemental Reserve Facility (SRF) and the Contingent Credit
Line (CCL) are not subject to limits in relation to quotas.
2. Interest Rate : The fixed charge or return, usually expressed on an annual basis, on a financial
asset expressed as a percentage of the price of the asset.
27.5 Review Questions

1. What is foreign direct investment and the rules & regulation in India related fdi
2. What does FDI stand for ? Why do mncs opt for fdi to enter international market ?
3. Did India slip from 8th to 14th on the global FDI chart ?
4. Why is international investment important?

Answers: Self-Assessment
1. (i)(d) (ii)(d) (iii)(b)
27.6 Further Readings

1. Krimawati, Wawat. (?) NAFTA: North America Free Trade Agreement. [Accessed
18 May 2009]
2. Vogel, David. (2009) North American Free Trade Agreement. [Accessed 18 May
2009] 2009. North American Free Trade Agreement (NAFTA).
3. United States Department of Agriculture, Foreign Agricultural Service. [Accessed
June 8, 2009]

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