SSC
INDIAN ECONOMY
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: -The correct answer is option 3, i.e. Foreign investment. Worldwide investment in multinational companies is called foreign investment.
Detailed explanation-2: -Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country.
Detailed explanation-3: -Foreign investment is when investors purchase an asset in a foreign country, resulting in the cash flow consideration transferring from one country to the next. Foreign direct investments (FDIs) are long-term physical investments, such as plants, toll roads, and bridges within foreign countries.
Detailed explanation-4: -Generally, MNCs invest in foreign countries to establish a subsidiary, to collaborate, or to acquire or buy a business. The main motive of such investments is to expand the business. Though they create jobs through their investment, job creation is not one of their main purposes.