What is investment? Name the companies which make foreign investment. Write any two benefits which a local company expects from joint production with a multinational company.
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.