Definition of Foreign investment:
Private capital investment by firms of one country into those of another.
Foreign investment involves capital flows from one country to another, granting the foreign investors extensive ownership stakes in domestic companies and assets. Foreign investment denotes that foreigners have an active role in management as a part of their investment or an equity stake large enough to enable the foreign investor to influence business strategy. A modern trend leans toward globalization, where multinational firms have investments in a variety of countries.
Foreign investment is largely seen as a catalyst for economic growth in the future. Foreign investments can be made by individuals, but are most often endeavors pursued by companies and corporations with substantial assets looking to expand their reach.
How to use Foreign investment in a sentence?
- You should always make sure to factor in the exchange rate any time you will be making a big foreign investment .
- An of FOREIGN INVESTMENT would be if you live in the U.S and you invest money in to a company that is in Spain, which is outside of the U.S.
- Commercial loans are another type of foreign investment and involve bank loans issued by domestic banks to businesses in foreign countries or the governments of those countries.
- The Chinese are a prime example of foreign investment to establish influence in emerging and developing economies in Africa and South America.
- Foreign investment refers to the investment in domestic companies and assets of another country by a foreign investor.
- Foreign indirect investment involves corporations, financial institutions, and private investors that purchase shares in foreign companies that trade on a foreign stock exchange.
- Large multinational corporations will seek new opportunities for economic growth by opening branches and expanding their investments in other countries.
- Foreign direct investments include long-term physical investments made by a company in a foreign country, such as opening plants or purchasing buildings.
Meaning of Foreign investment & Foreign investment Definition