Investment is necessary for economic growth It could be undertaken by domestic or foreign investors ...........

English ( Master) Paragraph Completion

Investment is necessary for economic growth. It could be undertaken by domestic or foreign investors. _________________________________. If domestic investment is not forthcoming, either because of a profitability crisis in the private sector or a self-imposed restraint on public spending (example, India’s Fiscal Responsibility and Budget Management Act), then we may be forced to attract foreign investment. In other words, in the event of a domestic investment crunch, relying on foreign investment is an option in the short term.

However, relying on foreign investment in the long term is not an economically sound policy.

However, a probable positive consequence of foreign investment is the inflow of new technology and its subsequent diffusion.

However, there are no a priori reasons for favouring foreign investment over domestic investment under normal economic conditions.

However, one central character of private investment makes it unreliable in the long term: volatility.

It is obvious that investment in a labour-intensive sector will generate more employment than the same investment in a capital-intensive sector.

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Explanation:

Correct Answer is (c).We can observe that the sentence following the blank mentions ‘domestic investment’ as a first priority as far as investment is concerned, the only option that fills the blank appropriately is option C.
Option C is hence the correct answer.