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Q.

Investments made by MNCs are called {fill_ regular}.


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Detailed Solution

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. Multinational companies set up their products where it is close to the markets, where skilled and unskilled labour is 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, building, machines and other equipment is called Investment. So, Investment made by MNCs is called Foreign Investment. Investments are made with the hope that these assets will earn profits.
 
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