The investment made by the MNCs is called ____.

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Detailed Solution

The investment made by the MNCs is called foreign investment. The investment includes the expenditure by the producer on setting up production. This includes expenditure on buildings, tools, equipment, raw material, and many other required amenities. Multinational companies are foreign and spread their products across many countries to reduce their cost of production. To start production in these countries, they must buy and build the required resources. Their expenditure on these resources is an investment; as the MNCs are foreign, it is called foreign investment.

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