An investment made by MNCS is called?

Appeared in: RRB Nsg. Superintendent-20 July 2019 (Shift-2)

Explanation

An investment made by an entity from one country into a business in another country is defined as a foreign investment.
Multinational Corporations (MNCs) are companies that operate in multiple countries, so their investments in host countries are, by definition, foreign investments.
This type of investment is a core component of globalization, facilitating the transfer of capital, technology, and management skills across borders.

Option B: This is an accounting term, not an investment term. A deficit occurs when expenditures are greater than income.
Option C: A mutual fund is a type of investment product where money from many investors is pooled. It is not a term for the act of an MNC investing in another country.
Option D: This is a vague and general term that refers to any funds belonging to a corporation. It lacks the specific meaning of a cross-border investment.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Definition of investment by Multinational Corporations (MNCs) as background academic context rather than a clinical decision trigger.
This is a general knowledge question related to economics, not a clinical one. Understanding this concept is important for general awareness of global economic activities.
Foreign investment is a major driver of economic growth, job creation, and technology transfer in the host country.
It allows companies to access new markets, diversify risks, and achieve greater efficiency.

How to Approach the Question

First, identify the key terms in the question: 'investment' and 'MNCs' (Multinational Corporations).
Recall or deduce the definition of an MNC: a company that operates in more than one country.
Consider the nature of an investment made by such a company. If it's investing outside its home country, the investment is 'foreign' to the host country.
Evaluate the options based on this understanding. 'Foreign Investment' directly and accurately describes this activity.
Eliminate the other options by defining them. 'Deficit Accounting' is an unrelated accounting concept. 'Mutual Fund' is a specific type of investment product, not the act itself. 'Corporate Fund' is too general.

Concept Tested & Keywords

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Practise the full RRB Nsg. Superintendent-20 July 2019 (Shift-2)

Attempt every question from this paper in a timed mock, then review the full solution for each one.