GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investment
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Foreign Trade
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Foreign Investment
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None of the above
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Detailed explanation-1: -Worldwide investment in multinational companies (MNC) is called foreign investment. It is an investment made by a company or individual from one country to the business of another country. It is also called foreign direct investment. It is an important factor in economic growth in the country.
Detailed explanation-2: -When the money is invested by the MNCs into companies belonging to other countries is known foreign investments. This is done for the expansion of the business.
Detailed explanation-3: -Foreign investments can be of two types, Foreign Direct Investment and Foreign Indirect Investment. FDI is when a company invests in a business in India, owning more than 10% of its stake. However, FII is when a company invests in a business in India by buying its shares/stocks, which can’t cross over 10% stakes.