The source of external finance among the options given is: Foreign direct investment.

Here's why:

a. WTO funds - The World Trade Organization (WTO) does not typically provide funds as a source of finance. It is an international organization that deals with the global rules of trade between nations.

b. World Bank Group - While the World Bank does provide loans and grants to the governments of poorer countries for the purpose of pursuing capital projects, it is not considered an external source of finance for businesses.

c. Export credit - This is a type of financing for international trade where the importer's bank offers to pay the exporter on behalf of the importer, to be repaid later. While it is a form of finance, it is not typically considered an external source of finance.

d. Foreign direct investment (FDI) - This is an investment made by a firm or individual in one country into business interests located in another country. This is considered an external source of finance as it involves the inflow of foreign capital.

Question

The source of external finance among the options given is: Foreign direct investment.

Here's why:

a. WTO funds - The World Trade Organization (WTO) does not typically provide funds as a source of finance. It is an international organization that deals with the global rules of trade between nations.

b. World Bank Group - While the World Bank does provide loans and grants to the governments of poorer countries for the purpose of pursuing capital projects, it is not considered an external source of finance for businesses.

c. Export credit - This is a type of financing for international trade where the importer's bank offers to pay the exporter on behalf of the importer, to be repaid later. While it is a form of finance, it is not typically considered an external source of finance.

d. Foreign direct investment (FDI) - This is an investment made by a firm or individual in one country into business interests located in another country. This is considered an external source of finance as it involves the inflow of foreign capital.

Knowee AI · Accepted Answer

The source of external finance among the options given is: Foreign direct investment.

Here's why:

a. WTO funds - The World Trade Organization (WTO) does not typically provide funds as a source of finance. It is an international organization that deals with the global rules of trade between nations.

b. World Bank Group - While the World Bank does provide loans and grants to the governments of poorer countries for the purpose of pursuing capital projects, it is not considered an external source of finance for businesses.

c. Export credit - This is a type of financing for international trade where the importer's bank offers to pay the exporter on behalf of the importer, to be repaid later. While it is a form of finance, it is not typically considered an external source of finance.

d. Foreign direct investment (FDI) - This is an investment made by a firm or individual in one country into business interests located in another country. This is considered an external source of finance as it involves the inflow of foreign capital.

Which one is the source of external finance?Select one:a.WTO fundsb.World bank groupc.Export creditd.Foreign direct investment

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