What is Foreign investment?
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http://www.investopedia.com/terms/f/foreign-investment.asp#axzz1qQVVL59F
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Foreign investment refers to the investment made by individuals, companies, or governments from one country in the businesses, assets, or projects of another country. It involves the transfer of capital, resources, or expertise across international borders.
To understand the concept of foreign investment, you can follow these steps:
1. Research: Begin by conducting research to gain a basic understanding of foreign investment, including its definition, purpose, and various forms. Look for credible sources such as economic websites, academic papers, or books that cover the topic.
2. Definition: Foreign investment typically involves the acquisition of assets or ownership in a foreign country, which can include physical assets (such as factories or real estate), financial assets (such as stocks or bonds), or direct investment in businesses or projects.
3. Motives: Learn about the motives behind foreign investment, which can vary based on the investor's goals. These motives may include expanding market presence, accessing natural resources, lowering production costs, gaining technological expertise, or simply diversifying investment portfolios.
4. Methods: Explore the different methods by which foreign investment takes place. These methods can include mergers and acquisitions, joint ventures, greenfield investments (establishing a new facility), or portfolio investments (buying stocks or bonds).
5. Impacts: Understand the potential impacts of foreign investment on both the investing and receiving countries. While it can bring economic benefits like job creation, technology transfer, and increased tax revenue, it can also pose challenges such as dependency, competition, or negative social and environmental impacts.
By following these steps, you can develop a comprehensive understanding of foreign investment and its various aspects.