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Question

When foreign investors buy land, building, or invest in a domestic company, it is known as .

A
foreign investment
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B
direct investment
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C
domestic investment
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D
indirect investment
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Solution

The correct option is A foreign investment
Globalization allows free movement of capital from one country to another. This means that US dollars can be used in India and vice versa. This movement of capital takes place through foreign investments.

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