Choose the given statement is True/False:

Foreign investment is an investment made by the government in foreign companies.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

True

False

answer is B.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

It is false. An investment made by Multinational companies from foreign countries is known as Foreign investment. The Investments may involve acquiring materials, developing a multinational presence or expanding the company's footprints. It is very beneficial for the MNC that is investing and the country it is investing in. The MNCs get cheaper labour, low production costs, better human resources, and high profits. The government gets additional funds, more job opportunities and an increase in industrialization. It helps in the movement of technology and investment between countries. It is a significant part of globalisation. Globalisation means allowing the integration of countries' economies to have a better and free flow of trade, capital, and movement of persons across borders.

Watch 3-min video & get full concept clarity