Choose the given statement is true/false:

When the money is spent on the purchasing of assets such as land, machines, building, etc is known as foreign investment.

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True

False

answer is B.

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Detailed Solution

The given statement is false.
When the money is spent by the individual or company on purchasing assets or anything, for example, land, machines, buildings, etc., it is known as an investment. Foreign investments are those made when MNCs invest money in businesses in other nations. On the one hand, investments usually occur in the domestic country itself. On the other hand, as the name suggests, foreign investments are made in other countries, and money flows from one country to another. Foreign investments are the source of funds that help develop an economy, and that's why the government tries to attract foreign investment in the economy.
The correct statement will be foreign investments are those made when MNCs invest money in businesses located in other nations.

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