The money that is spent to buy assets such as land, building, machines and other equipments is called investment.
The companies which make foreign investment are Ford Motors, Nike, Coca-Cola, Pepsi, Honda, Nokia and Tata Motors, Infosys, Ranbaxy, Asian Paints, etc of India.
A local company expects the following benefits from joint production with a multinational company.
(i) MNCs can provide money for additional investments, like buying new machines for faster production.
(ii) MNCs might bring with them the latest technology for production.