Foreign Investment

Foreign Investment refers to the practice of investing capital in a country by individuals or entities from another country. This can take the form of direct investments, such as buying property or establishing businesses in the foreign country, or portfolio investments, which involve purchasing financial assets like stocks or bonds. Foreign investment is often pursued to seek opportunities for growth, diversification, and potential returns that may not be available in the investor’s home country. It plays a significant role in the economies of host countries, as it can lead to job creation, technology transfer, and economic development. However, it can also raise concerns regarding control of domestic industries, capital flight, and potential exploitation of local resources.