Question

Which of the following best explains foreign investments?

• A. Foreign investments refer to the investments made by domestic companies.
• B. Foreign investments refer to the investments made by MNCs in a foreign country to expand their businesses.
• C. Foreign investments are grants issued by the government for the expansion of business.
• D. Foreign investments refer to the collaboration between countries for economic development.

Answer 1

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

For business expansion, MNCs invest in foreign countries. The investments made in foreign countries to expand their businesses are known as foreign investments.