Question

Which of the following best describes foreign investments?

• A. Foreign investments refer to the investments made by domestic companies.
• B. Foreign investments refer to the investments made by MNCs in foreign countries to expand their businesses.
• C. Foreign investments refer to the grants issued by the government for business expansion.
• D. Foreign investments refer to interconnection between the countries.

Answer 1

The correct option is B Foreign investments refer to the investments made by MNCs in foreign countries to expand their businesses.

For the purpose of global reach, MNCs invest in foreign countries. Such investments made by the MNCs in foreign countries to expand their businesses are referred to as foreign investments.