When can disinvestment of Foreign Direct Investment (FDI) begin?

Correct option is A

The correct answer is (a) At the end of the business cycle when companies try to expand their assets abroad
Explanation:
· Disinvestment of FDI (Foreign Direct Investment) occurs when a foreign company decides to sell its assets or stakes in a domestic enterprise.
· This often happens at the end of a business cycle or during a period of consolidation when companies reassess their global portfolios.
· Multinational corporations may exit a market to redeploy capital into more lucrative opportunities elsewhere or to expand their assets in other international markets.
· Other factors influencing disinvestment include unfavorable changes in government policy, political instability, or the completion of a specific project's life cycle.
Information Booster:
· FDI is a long-term investment in the production or business of another country, whereas FPI (Foreign Portfolio Investment) is more liquid and prone to "hot money" movements.
· The Department for Promotion of Industry and Internal Trade (DPIIT) is the nodal agency in India for formulating FDI policy.
Additional Knowledge:(c) Interest rates and investment opportunities: (Option c) High interest rates and high local opportunities generally attract FDI rather than causing disinvestment.
(d) Domestic investment dominates: (Option d) Domestic domination does not necessarily trigger FDI exit unless it is coupled with restrictive protectionist policies.