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Q.

What is a foreign investment?


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a

Investment made by the foreign governments

b

Investment made by the foreign banks

c

Investment made by the MNCs

d

Investment made by the IMF and World Bank 

answer is C.

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Detailed Solution

Foreign investment refers to the investment made by multinational corporations.
Multinational corporations make foreign investments based on certain factors, which include cheap labour, the availability of natural resources, transportation facilities, and proximity to markets. It is essential to the economy's growth and connects different countries. Foreign investments could be made either by acquiring an existing company or by entering into a partnership with an existing company. The partnership helps share advanced technology and production techniques of multinational companies. Multinational corporations also make investments by establishing new businesses.
 
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