SSC MTS EXAM

SSC

INDIAN ECONOMY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Investment made by MNCs is called
A
Investment
B
Foreign Trade
C
Foreign Investment
D
None of the above
Explanation: 

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.

There is 1 question to complete.