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.