What is foreign investment? How much did Ford Motors invest in India?
Foreign investment refers to the investment made by MNCs in countries other than their home country. MNCs look for locations around the world which would be cheap for their production, and foreign investment by MNCs in these countries has been rising.
Ford Motors invested Rs. 1700 crore in India. This amount was spent in 1995 to set up a large plant near Chennai. The investment was made in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.
Explanation
The textbook explains foreign investment in the context of MNCs seeking locations worldwide for cheap production. The Ford Motors example clearly states the investment amount of Rs. 1700 crore spent to set up a plant near Chennai in 1995, in collaboration with Mahindra and Mahindra.