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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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