Answer:
Foreign Investment/Foreign Capital is required because
(a) It helps in sustaining a high level of investment.
(b) It fills up the technology and management gap.
(c) It ensures most efficient use of capital.
(d) It fills up the saving-investment gap.
(e) It minimises balance of payments problem.
(f) It undertakes the initial risk of investment.
(g) It helps in development of basic economic infrastructure.
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