Q8 of 31 Page 4

Differentiate between investment and foreign investment.[CBSE 2016]

Investment refers to the amount of money which is spent on the factors of production i.e. land, labour, capital and other equipment in order to generate the desired output. Whereas foreign investment refers to the investment which is made by Multinational corporations (MNCs) in different countries across the globe.

NOTE – Multinational corporations are companies that own or control production in more than one country.

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