SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investments made by MNCs are termed as:
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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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Explanation:
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)
Detailed explanation-3: -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.
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