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Q.

What is the foreign investment?


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a

Investment made by the foreign government

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

The investment made by the MNCs is foreign investment.
 Foreign investment is defined as a foreign investor's investment in domestic companies and assets of another country. Large multinational corporations are constantly looking for new opportunities for economic growth by establishing new branches and expanding their investments in other countries. In other words, foreign direct investment is defined as an investment in the form of controlling ownership in a business in one country by an entity based in another country. Thus, it is distinguished from a foreign portfolio investment by the notion of direct control.
 
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