GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Indigenous investment
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Foreign investment
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Entrepreneur’s investment
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None of the above
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Detailed explanation-1: -Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits. At times, MNCs set up production jointly with some of the local companies of these countries.
Detailed explanation-2: -Foreign direct investment (FDI) is when a company takes controlling ownership in a business entity in another country. With FDI, foreign companies are directly involved with day-to-day operations in the other country.
Detailed explanation-3: -When the money is spent on the purchasing of assets such as land, machines, building etc is known as investment. 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.