Question
Download Solution PDFWorldwide investment is called MNCs
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe 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 |
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Public investment fund |
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Corporate fund |
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