Which of the following is not a popular industry targeted by the Organisation for Economic Co-operation and Development (OECD) for Foreign Direct Investment (FDI)?

Correct option is A

The correct answer is (a) Real Estate
Explanation:
• The OECD monitors and analyzes FDI trends across various sectors to promote economic growth and international stability.
• While Real Estate does receive foreign investment, it is often categorized by the OECD as a more volatile or "passive" sector compared to high-growth industrial sectors.
• Popular industries heavily targeted and tracked for FDI by OECD nations usually involve high-value creation, such as Manufacturing, Services, and Technology.
• Sectors like Business Services and Telecommunications are primary targets because they facilitate cross-border trade and infrastructure development.
• The OECD's FDI Regulatory Restrictiveness Index often shows that real estate has more domestic restrictions compared to industrial manufacturing.
Information Booster:
• The Organisation for Economic Co-operation and Development (OECD) is an international organization with 38 member countries, founded in 1961 to stimulate economic progress.
• The OECD FDI Index measures statutory restrictions on foreign direct investment across 22 economic sectors.
• According to OECD data, the Services sector (including finance and business services) typically accounts for the largest share of global FDI stocks.
• Chemicals and Plastics represent a significant portion of the manufacturing FDI due to complex global supply chains.
Additional Knowledge:
(b) Chemicals and Plastics Manufacturing (Option b)
• This is a major sub-sector of Manufacturing FDI, involving significant capital expenditure and long-term investment.
• It is highly targeted by OECD countries seeking to strengthen their industrial base.
(c) Telecommunications (Option c)
• This sector is a critical part of the infrastructure targeted for FDI to enhance digital connectivity.
• OECD nations prioritize this for technological advancement and service-led growth.
(d) Business Services (Option d)
• This includes R&D, marketing, and consultancy, which are among the fastest-growing areas for foreign investment in developed economies.
• It contributes significantly to the "knowledge economy" favored by OECD frameworks.