In which year did the companies IBM and Coca Cola shut down their operations for not being able to c...........

General Studies (MTS) Indian Economy

In which year did the companies IBM and Coca Cola shut down their operations for not being able to comply with the Foreign

Exchange Regulation Act that mandated foreign investors cannot own over 40% in Indian enterprises?

This questions was previously asked in

SSC MTS 7th October 2021 Shift-1

1964

1981

1956

1977

- In 1964, there was no significant event related to IBM and Coca-Cola closing operations in India due to the Foreign Exchange Regulation Act.

- The Foreign Exchange Regulation Act (FERA) was enacted in 1973, but its implementation affecting foreign companies occurred in later years.

- In 1956, this context does not apply as the FERA was not in existence.

- In 1977, IBM and Coca-Cola did indeed shut down their operations in India because of the requirement in FERA that limited foreign ownership to 40%.

Your Answer: Option 4 - 1977

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