Read the following extract and answer the following questions:

In recent years, the central and state governments in India have been taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up. SEZs are to have world-class facilities: electricity, water, roads, transport, storage, recreational and educational facilities. Companies that set up SEZ production units do not have to pay taxes for five years. The government has also allowed flexibility in the labour laws to attract foreign investment. You have seen in Chapter 2 that the companies in the organised sector have to obey certain rules that aim to protect the workers’ rights. The government has recently allowed companies to ignore many of these. Instead of hiring workers regularly, companies hire workers ‘flexibly’ for short periods when there is intense pressure from work. This is done to reduce the cost of labour for the company. However, foreign companies are still unsatisfied and demand more flexibility in labour laws.

The investment made by MNCs is called ____.

Question

Read the following extract and answer the following questions:

In recent years, the central and state governments in India have been taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up. SEZs are to have world-class facilities: electricity, water, roads, transport, storage, recreational and educational facilities. Companies that set up SEZ production units do not have to pay taxes for five years. The government has also allowed flexibility in the labour laws to attract foreign investment. You have seen in Chapter 2 that the companies in the organised sector have to obey certain rules that aim to protect the workers’ rights. The government has recently allowed companies to ignore many of these. Instead of hiring workers regularly, companies hire workers ‘flexibly’ for short periods when there is intense pressure from work. This is done to reduce the cost of labour for the company. However, foreign companies are still unsatisfied and demand more flexibility in labour laws.

The investment made by MNCs is called ____.

Accepted Answer

The investment by multinational companies, also called MNCs, is called foreign investment.
During globalisation, there was the emergence of MNCs in developed countries. Many of these MNCs spread their products to more than one country to reduce the cost of production. This led to their investment in less developed countries. This investment by an individual or organisation from another country is called foreign investment. This foreign investment is beneficial for the countries in their development. It can come in both the manufacturing sector and the service sector.

Best Courses for You

Detailed Solution

courses

Get Expert Academic Guidance – Connect with a Counselor Today!

best study material, now at your finger tips!

download the app

Download the App