Mention if the given statement is true or false:

The most common route for an MNC to start a business in a country is to enter into a joint venture.

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True

False

answer is B.

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Detailed Solution

The given statement is false.
Money spent to buy land, buildings, machines, equipment, and other assets are known as investments and not foreign investments. It is significant for the growth of businesses in the long run. On the other hand, foreign investment refers to the investment made by multinational corporations in other countries. MNCs make foreign investments based on certain factors, which include cheap labour, the availability of natural resources, transportation facilities, and proximity to markets.
Thus, the correct statement is, "Money spent by MNCs to buy land, building and other assets in other countries is known as foreign investment."

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