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​The money invested by foreign MNC's is known as: ​
Question

The money invested by foreign MNC's is known as:

A.

Direct investment


B.

Foreign direct investment


C.

Foreign collateral

D.

Foreign monetary investment

Correct option is B

​The correct answer is (B) Foreign direct investment.

  • Foreign direct investment refers to the investment made by a company or an individual from one country into business interests located in another country.
  • In this case, foreign multinational corporations (MNCs) invest directly in businesses, infrastructure, or assets in another country.
  • The investor has significant influence or control over the operations of the business in the foreign country.
  • Examples include building factories, acquiring a stake in local companies, or opening subsidiaries.

Information Booster:

  • Direct Investment: This is a general term and does not specifically refer to foreign investments.
  • Foreign Collateral: Collateral refers to assets used as security for loans, not investments.
  • Foreign Monetary Investment: This is not a standard term used in economics or business for such investments.

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