Question

distinguish between investment and foreign investment

Answer 1

Foreign direct investment (FDI) involves establishing a direct business interest in a foreign country, such as buying or establishing a manufacturing business, while foreign portfolio investment (FPI) refers to investing in financial assets such as stocks or bonds in a foreign country. A number of other differences follow from the basic difference in the nature of these two types of investments.

When making foreign investments, investors have to consider economic factors as well as other risk factors, such as political instability and currency exchange risk.

Answer 2

ᴛʜᴇ ᴍᴏɴᴇʏ ᴛʜᴀᴛ ɪs ᴜsᴇᴅ ᴛᴏ sᴇᴛ ᴜᴘ ɪɴᴅᴜsᴛʀɪᴇs, ʙᴜʏ ᴀssᴇᴛs, ᴍᴇʀɢᴇ ᴡɪᴛʜ ᴄᴏᴍᴘᴀɴɪᴇs ʙᴀsᴇᴅ ɪɴ ғᴏʀᴇɪɢɴ ʟᴀɴᴅ ɪs ᴄᴀʟʟᴇᴅ ғᴏʀᴇɪɢɴ ɪɴᴠᴇsᴛᴍᴇɴᴛ, ᴡʜɪʟᴇ ɪɴᴠᴇsᴛᴍᴇɴᴛ ɪs sɪᴍᴘʟʏ ᴛʜᴇ ʙᴜʏɪɴɢ ᴏғ ᴀssᴇᴛs, ʟᴀɴᴅ, ʙᴜɪʟᴅɪɴɢ, ᴇᴛᴄ.

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