FDIWhich of the following options is an example of foreign direct investment (FDI)?A Japanese company purchasing Indian government debtA German company buying stocks on the New York stock exchangeAn American fashion apparel company opening new stores across India A Chinese company exporting hardware to South Korea

The example of foreign direct investment (FDI) among the options given is: An American fashion apparel company opening new stores across India.

Here's why:

Foreign Direct Investment (FDI) refers to an investment made by a firm or individual in one country into business interests located in another country. This is typically done in the form of establishing business operations or acquiring business assets in the foreign country, such as ownership or controlling interest in a foreign company.

1. A Japanese company purchasing Indian government debt: This is an example of portfolio investment, not FDI. The Japanese company is buying debt, not investing in or acquiring a business in India.

2. A German company buying stocks on the New York stock exchange: This is also an example of portfolio investment. The German company is buying stocks (financial instruments), not directly investing in the businesses.

3. An American fashion apparel company opening new stores across India: This is an example of FDI. The American company is investing in business operations in India by opening new stores.

4. A Chinese company exporting hardware to South Korea: This is an example of trade, not FDI. The Chinese company is selling goods to South Korea, not investing in or acquiring a business there.