Worldwide investment is called MNCs

Question

Question

This question was previously asked in

RPF SI (2018) Official Paper (Held On : 11 Jan 2019 Shift 1)

Answer 1

The correct answer is option 3, i.e. Foreign investment.

Worldwide investment in multinational companies is called foreign investment.

It is an investment made by a company or individual from one country to the business of another country. It is also called as foreign direct investment.
It is an important factor in economic growth in the country.
In Foreign direct investment, foreign entity acquires shares or ownership in the company and can influence day-to-day businesses and operations.
It is not an only inflow of money but also technology, skills and expertise.
It is one of the major ways of capital transfer internationally and how well it is working will depend upon the host country’s system and infrastructure.
FDI in India improved after the LPG reforms of 1991. The government opened the economy for investment and improved FDI norms.

Term	Definition
Mutual fund	It collects money from different investors and invests this money in securities like debt and equity. It is one of the fastest-growing sectors in India and regulated by SEBI.
Public investment fund	It is an investment fund with sovereign wealth in Saudi Arabia. It is one of the largest in the world of its own type.
Corporate fund	It is a private equity fund of a financial or any industrial corporation. Every corporate fund has its own investment objective.