Investments made by MNC are called ____.

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Detailed Solution

Investments made by MNCs are called foreign investments.
MNCs look out for countries where labour and resources for production processes are available at a meagre cost to maximise their profits by cutting down their production costs. Multinational companies have invested in other countries and outsourced certain services to expand their production, reach out to more potential consumers abroad, reduce production costs by setting up production in countries with cheap labour and resources and maximise profits. Foreign investment has increased competition in both international and domestic markets. As a result of growing competition, the quality of goods and services produced has improved, and consumers are benefited.

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