Investments made by MNCs are called ____.

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Detailed Solution

Investments made by MNCs are called foreign investments.
The investment made by MNCs is called "foreign investment." An MNC, also known as a multinational company, is a company that owns or controls production in more than one country. International companies set up their productions where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. After being assured of these conditions, MNCs set up their factories and offices for production. The amount spent on buying assets such as land, buildings, machines, and other equipment is called investment. So, the investment made by MNCs is called "foreign investment." Investments are made with the hope that these assets will earn profits.

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