Foreign investment

Home > Economics > International Trade > Foreign investment

Investment in foreign countries, including the acquisition of assets, joint ventures, and partnership agreements.

Foreign Direct Investment (FDI): Investment in a foreign company to acquire a controlling interest or to establish a new business entity.
International trade agreements: Legal agreements between countries that govern trade and investment.
Exchange rates: The value of one currency compared to another, affecting the value of investments.
Political risk: The likelihood of political instability or government intervention affecting foreign investments.
International taxation: The taxation of foreign investments and profits in different countries.
Cross-cultural communication: Understanding cultural differences in business practices and communication when investing in foreign countries.
Intellectual property protection: Ensuring the protection of patents, trademarks, and copyrights when conducting business in foreign countries.
International marketing: Adapting marketing strategies to target consumers in foreign markets.
Global supply chain: Planning and managing the movement of goods and services across borders.
Country analysis: Assessing political, economic, social, and technological factors affecting foreign investment in a particular country.
Foreign Direct Investment (FDI): This involves a foreign company acquiring and operating a business in the host country. It could be in the form of establishing a subsidiary, acquiring a local company, or owning a significant share of a local company.
International Portfolio Investment: This involves purchasing stocks, bonds, or other securities issued by foreign companies, governments, or organizations.
Foreign Aid: This is financial assistance given by one country to another with the aim of promoting economic development, social welfare, or political stability.
Foreign Loans: This involves borrowing funds from foreign creditors or banks to finance projects, businesses, or government activities.
Joint Ventures: This involves two or more companies from different countries coming together to create a new business venture.
Exporting: This involves selling goods or services produced in one country to buyers in other countries.
Licensing: This involves allowing a foreign company to use a trademark, patent, or other intellectual property owned by the host country company in exchange for royalties or fees.
Franchising: This involves a franchisor (a company) granting rights to a foreign franchisee to operate their business in the host country.
Management Contracts: This involves a foreign company providing management services to a host country company, often as part of a joint venture agreement.
Turnkey Projects: This involves a foreign company designing, building, and delivering turnkey projects to a host country without any ongoing involvement in the operation of the project.
Quote: "A foreign direct investment (FDI) refers to purchase of an asset in another country, such that it gives direct control to the purchaser over the asset (e.g. purchase of land and building)."
Quote: "Purchase of land and building."
Quote: "It is thus distinguished from a foreign portfolio investment or foreign indirect investment by a notion of direct control."
Quote: "It is an investment in the form of a controlling ownership in a business."
Quote: "An investment in the form of controlling ownership in... real estate."
Quote: "An investment in the form of controlling ownership in... productive assets such as factories."
Quote: "By an entity based in another country."
Quote: "The investment may be made either 'inorganically' by buying a company in the target country..."
Quote: "The investment may be made... 'organically' by expanding the operations of an existing business in that country."
Quote: "The origin of the investment does not impact the definition, as an FDI..."
Quote: "An investment in the form of... purchase of land and building."
Quote: "Such that it gives direct control to the purchaser over the asset."
Quote: "It is an investment in the form of a controlling ownership in a business."
Quote: "An investment in the form of... real estate."
Quote: "An investment in the form of... factories."
Quote: "...distinguished from... foreign indirect investment by a notion of direct control."
Quote: "...distinguished from a foreign portfolio investment... by a notion of direct control."
Quote: "The investment may be made either 'inorganically' by buying a company in the target country."
Quote: "The investment may be made... 'organically' by expanding the operations of an existing business in that country."
Quote: "By an entity based in another country."