SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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set up new factories
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buy existing local companies
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form partnership with local companies
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None of the above
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Detailed explanation-1: -The most common route for investments by MNCs in countries around the world is to form partnerships with local companies. Q. Choose the most appropriate option.
Detailed explanation-2: -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.
Detailed explanation-3: -Worldwide investment in multinational companies 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 as foreign direct investment. It is an important factor in economic growth in the country.