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Q.

[[1]] are the investments directly made by a foreign industrial house or MNC in industry or other spheres of economic activity.


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Detailed Solution

Foreign investments are the investments directly made by a foreign industrial house or MNC in industry or other spheres of economic activity. It gives them a privilege to expand their business as well as the profit margin of the firm. Foreign investments are different from investments. Investments are explained as expenditures incurred by individuals on creating new capital assets to earn interest on them. Let us understand it with an exemplification.
 
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