Worldwide investment is called MNCs 

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RPF SI (2018) Official Paper (Held On : 11 Jan 2019 Shift 1)
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  1. Mutual Fund 
  2. Public Fund Investment 
  3. Foreign Investment 
  4. Corporate Fund 

Answer (Detailed Solution Below)

Option 3 : Foreign Investment 
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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.
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