What is foreign indirect investment?

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from inverstorwords.com: A way of investing in real estate without actually investing in the property. Indirect investment can be done in many ways, including securities, funds, or private equity. Most investors interested in indirect investme from inverstorwords.com: A way of investing in real estate without actually investing in the property. Indirect investment can be done in many ways, including securities, funds, or private equity. Most investors interested in indirect investment would do so through a company or advisor who has experience in this type of investing. from www.joneslanglasalle.eu: Indirect investment is a means of gaining exposure to real estate without investing directly, i.e. into 'bricks & mortar'. There are a number of routes to gaining indirect exposure to real estate, whether it be through listed securities, derivatives or investment funds. Investors are therefore able to invest in real estate without the issues related to direct ownership.
from me: I will add, "that takes place on the international market".
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What are the advantages and disadvantages of foreign direct investments?

advantages - causes a flow of money into the economy which stimulates economic activity - employment will increase - long run aggregate supply will shift outwards - aggregate demand will also shift outwards as investment is a component of aggregate demand - it may give domestic producers an incentive to become more efficient - the government of the country experiencing increasing levels of FDI will have a greater voice at international summits as their country will have more stakeholders in it Disadvantages - inflation may increase slightly - domestic firms may suffer if they are relatively uncompetitive - if there is a lot of FDI into one industry e.g. the automotive industry then a country can become too dependent on it and it may turn into a risk that is why countries like the Czech Republic are "seeking to attract high value-added services such as research and development (e.g.) biotechnology)"A

Advantages of foreign direct investment?

FDI or MNC can: fill up the Nation Saving Gap fill the Foreign exchange gap fill the tax revenue fill the management, entrepreneurship, technology and skill gap An Overview of Advantages of FDI- Foreign Direct Investment in India is allowed through four basicroutes namely, financial collaborations, technical collaborationsand joint ventures, capital markets via Euro issues, and privateplacements or preferential allotments. FDI inflow helps the developing countries to develop a transparent,broad, and effective policy environment for investment issues aswell as, builds human and institutional capacities to execute thesame. Benefits of Foreign Direct Investment- Attracting foreign direct investment has become an integral part ofthe economic development strategies for India. FDI ensures a hugeamount of domestic capital, production level, and employmentopportunities in the developing countries, which is a major steptowards the economic growth of the country. FDI has been a boomingfactor that has bolstered the economic life of India, but on theother hand it is also being blamed for ousting domestic inflows.FDI is also claimed to have lowered few regulatory standards interms of investment patterns. The effects of FDI are by and largetransformative. The incorporation of a range of well-composed andrelevant policies will boost up the profit ratio from ForeignDirect Investment higher. Some of the biggest advantages of FDIenjoyed by India have been listed as under: Economic growth- This is one of the major sectors, which isenormously benefited from foreign direct investment. A remarkableinflow of FDI in various industrial units in India has boosted theeconomic life of country. Trade- Foreign Direct Investments have opened a widespectrum of opportunities in the trading of goods and services inIndia both in terms of import and export production. Products ofsuperior quality are manufactured by various industries in Indiadue to greater amount of FDI inflows in the country. Employment and skill levels- FDI has also ensured a numberof employment opportunities by aiding the setting up of industrialunits in various corners of India. Technology diffusion and knowledge transfer- FDI apparentlyhelps in the outsourcing of knowledge from India especially in theInformation Technology sector. It helps in developing the know-howprocess in India in terms of enhancing the technologicaladvancement in India. Linkages and spillover to domestic firms- Various foreignfirms are now occupying a position in the Indian market throughJoint Ventures and collaboration concerns. The maximum amount ofthe profits gained by the foreign firms through these jointventures is spent on the Indian market.

Compare and contrast direct investment with indirect investment?

As the words suggest, direct investment refers to spending money on an investment where the investor can see/hold a tangible good. For example, you can invest directly by purchasing shares of a company or buying an investment house; these invest are tangible and can be seen.. This is contrasted by investing indirectly. This means someone will give their money to, for example, an investment fund such as GPT (General property Trust) who take your money and directly invest it in property, or shares, cash, bonds et al.. By indirect investment,the investor is not directly associated with the profit and loss of the firm on which the money is ultimately going

What is indirect investing?

Indirect investing means you do not buy directly the underlying, but you buy a derivative instead. For example, instead of buying Microsoft, Apple, IBM, Google, Amazon and some other technology stocks directly, you can buy them by purchasing a related mutual or exchange traded fund. In case of real estates, you can buy REITs for example - thus it provides you a way to get exposure to real estates without having a lot of money in your pocket.

What are the advantages of foreign direct investment?

FDI or MNC can. fill up the Nation Saving Gap. fill the Foreign exchange gap. fill the tax revenue. fill the management, entrepreneurship, technology and skill gap. An Overview of Advantages of FDI-. Foreign Direct Investment in India is allowed through four basic routes namely, financial collaborations, technical collaborations and joint ventures, capital markets via Euro issues, and private placements or preferential allotments. FDI inflow helps the developing countries to develop a transparent, broad, and effective policy environment for investment issues as well as, builds human and institutional capacities to execute the same.. Benefits of Foreign Direct Investment-. Attracting foreign direct investment has become an integral part of the economic development strategies for India. FDI ensures a huge amount of domestic capital, production level, and employment opportunities in the developing countries, which is a major step towards the economic growth of the country. FDI has been a booming factor that has bolstered the economic life of India, but on the other hand it is also being blamed for ousting domestic inflows. FDI is also claimed to have lowered few regulatory standards in terms of investment patterns. The effects of FDI are by and large transformative. The incorporation of a range of well-composed and relevant policies will boost up the profit ratio from Foreign Direct Investment higher. Some of the biggest advantages of FDI enjoyed by India have been listed as under: Economic growth- This is one of the major sectors, which is enormously benefited from foreign direct investment. A remarkable inflow of FDI in various industrial units in India has boosted the economic life of country. Trade- Foreign Direct Investments have opened a wide spectrum of opportunities in the trading of goods and services in India both in terms of import and export production. Products of superior quality are manufactured by various industries in India due to greater amount of FDI inflows in the country. Employment and skill levels- FDI has also ensured a number of employment opportunities by aiding the setting up of industrial units in various corners of India. Technology diffusion and knowledge transfer- FDI apparently helps in the outsourcing of knowledge from India especially in the Information Technology sector. It helps in developing the know-how process in India in terms of enhancing the technological advancement in India. Linkages and spillover to domestic firms- Various foreign firms are now occupying a position in the Indian market through Joint Ventures and collaboration concerns. The maximum amount of the profits gained by the foreign firms through these joint ventures is spent on the Indian market.

What is backward vertical foreign direct investment?

Backward FDI is investing in an industry which supplies your firm at home. Buying or building a supplier. For example, if Ford builds an engine production facility in Mexico which ships engines to it manufacturing site in Texas. This would be backward vertical FDI .

Foreign direct investment of china?

Chengdu commits itself to build a standardized and service oriented government to provide China foreign investment services to investors with the establishment of Chengdu Municipal Comprehensive Service Centre, Chengdu Foreign Investment Promotion Centre and Chengdu Taiwanese Business Complain Centre. Chengdu Hi-Tech Zone is granted the same administration power as the municipal level and provides 3 phases' services to enterprises which composed with promotion of investment & construction and enterprise service through a special parallel examination and approval process. Chengdu Hi-tech Zone has set up two government service centres both in the south park and the west park conducting "one stop" services and "zero fees" policy, providing professional services for key projects. Chengdu has a sound public security condition with no major criminal cases for many years. The satisfaction rate of Chengdu citizens for comprehensive security and city management is at 94%.

What is the difference between foreign trade and foreign investment?

when MNCs invest their money to buy assets such as land and machines, it is known as foreign investment. It is made with the hope that the value of these assets will increase in future whereas foreign trade is the trade which takes place between two or more countries through MNCs. Foriegn Trade includes buying and selling of good under an aggreement while Foriegn Investment only deals with investments in shares of properties on a foriegn land

Horizontal foreign direct Investment?

This paper examines the impact of uncertainty on the profitability of vertical and horizontal foreign direct investment (FDI). Vertical FDI takes place when the multinational fragments the production process internationally, locating each stage of production in the country where it can be done at the least cost. Horizontal FDI occurs when the multinational undertakes the same production activities in multiple countries. We consider a model where the risk-neutral multinational must commit its investment prior to the realization of shocks. The multinational has monopoly power and confronts two types of risk. It may face random productivity shocks or encounter a host country that tries to confiscate its rents. We show that greater uncertainty reduces the expected income from vertical FDI but increases the expected income from horizontal FDI. In addition, predatory actions by the host country are more costly to the multinational that has structured its production vertically rather than horizontally. Consequently, increased uncertainty should encourage horizontal FDI but discourage vertical FDI. If vertical FDI is more likely to flow into emerging markets and horizontal FDI into mature markets, then the empirical finding that most FDI is horizontal rather than vertical might be due, in part, to the greater uncertainty associated with emerging markets. We report cross-country regression results that provide some support for the predictions of the model. Volatility appears to have a differential impact on FDI inflows into mature and emerging markets. For mature markets that supposedly attract mainly horizontal FDI, greater volatility significantly increases FDI inflows. For emerging markets that receive relatively more vertical FDI inflows, increased volatility does not increase FDI inflows.. copyright http://www.nber.org/papers/w8631

The impact of capital market on foreign direct investment in nigeria?

capital market serve as a source of resource to multinationals that wish to source their finances locally, in other words the market provides means of finance to multinational companies, capital market can also serve as an indicator that can attract or repel FDI flow since it serves as a thermometer that measures the economy

How do you invest in a foreign stock market?

hai Evey Body; . first of all complitly know about company and products then now how is going and how will be go in future in the company products. all invester should be know all the details. then invest you'r part of cash.

Difference between Foreign direct investment and foreign institutional investment?

A Foreign Institutional Investor (FII) is a financial investor and invests only in stocks and bonds/. He needs to register with SEBI, can buy/sell several securities on stock market and take out his money/profits any time. A foreign Direct Investor invests directly in a project.He is a partner/promoter in the project and stays invested for a longer period. He does not, unlike FII, invests in many companies.

What Satyam Scandal would Impact Foreign Investments in India?

In one of the the biggest frauds in India's corporate history, B. Ramalinga Raju, founder and CEO of Satyam Computers, India's fourth-largest IT services firm, announced on January 7 that his company had been falsifying its accounts for years, overstating revenues and inflating profits by $1 billion. Ironically, Satyam means "truth" in Sanskrit, but Raju's admission -- accompanied by his resignation -- shows the company had been feeding investors, shareholders, clients and employees a steady diet of asatyam (or untruth), at least regarding its financial performance

Who need foreign investment?

All countries require foreign investment in order to be competitivein many markets including technology. Foreign investment allows forfree trade.

What is the disadvantage of Foreign direct investment?

- inflation may increase slightly - domestic firms may suffer if they are relatively uncompetitive - if there is a lot of FDI into one industry e.g. the automotive industry then a country can become too dependent on it and it may turn into a risk that is why countries like the Czech Republic are "seeking to attract high value-added services such as research and development (e.g.) biotechnology)"

What is the difference in direct investing and indirect investing?

Indirect investing refers to a way of investing in real state without actually investing in the property. Indirect investment can be done in many ways, including securities, funds, or private equity. Most investors interested in indirect investment would do so through a company or advisor who has experience in this type of investing.. Direct investment refers to an investment which is sufficiently large to affect a company's subsequent decisions This is sometimes a majority ownership, but sometimes it's just a significant minority ownerships. .

What is Foreign Direct Investment stock?

Foreign direct investment stock is defined as the value of the share of capital. and reserves (including retained profits) attributable to the parent enterprise,. plus the net indebtedness of affiliates to the parent enterprise.

Why did coca-cola engage in foreign direct investments in Europe?

Coke made these investments in order to improve its market position. This is being done in three ways. First, the construction of new bottling plants is helping the company produce a low-cost product. Second, marketing expenditures are helping the firm gain the product recognition needed for growth. Third, direct investments in facilities closer to the market are reducing delivery time and eliminating associated expenses.

What is horizotal foreign direct investments?

A measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization. Horizontal foreign direct investments happen when a multinational company carries out a similar business operation in different nations.

Are foreigners investing in South Korea?

South Korea is 15th in world economies. A typical investment in South Korea is FDI, foreign direct investment. One of the four tigers, South Korea leads imports in raw materials for manufacturing and service sector. A useful site for FDI is korea.net.

Advantages of foreign direct investment in Malaysia?

Making a foreign direct investment is a popular option in the market. But, before your company allows a foreign company to actually make an investment, it is best to understand the advantages of foreign direct investment your company and the country are going to receive. The advantages of foreign direct investment come from a long-term relationship between two countries. This happens when a country involves itself in the other country by transferring technology, expertise, or otherwise has an impact on its economy. This can spur the growth of that country's economy and give birth to multinational corporations. Foreign direct investment is also known as FDI. It has an extraordinary role in maintaining the growth of global business as it can provide new markets and cheaper production facilities. The country at the receiving end benefits from the following types of resources. Transfer of Technology The transfer of technology isn't just restricted to actual technologies. It involves sharing skills, manufacturing methods and even entire facilities. It can also refer to the knowledge passed by scientific research institutions. Countries generally have a government organization that handles and identifies potential commercially viable technology. These types of organizations are also present in big companies and universities. The advantages of foreign direct investment and the transferring of technology for the receiving country is great, as those countries usually don't have access to research facilities or the knowledge otherwise. Looking For Penny Stocks? www.easy-forex.com/Malaysia You Should Try Forex. No Fees, $25 Start, High Leverage. Join Now! How to Invest in Gold WealthDaily.com/Gold_Investing Don't just buy gold, invest in it. Our Free report will show you how Free London Property www.ypc-group.sg/freeseminar investment secrets of a filthy-rich expat investor. Free Singa seminar. Ads by Google Development of Human Capital Resources One of the biggest is the development of human capital resources. This is probably also understated as its effects are not immediately apparent. Human capital is the knowledge and competence of those able to perform labor, also known as the workforce. The attributes gained by sharing experience and training increases the education and overall human capital of a country. The human capital resource is not a tangible asset that is own by a company, but rather something that is on loan. Therefore, countries with FDI benefit greatly by increasing the development of their human resources while maintaining ownership. Increment in Income Another of the advantages of a foreign direct investment is the rise of the income for the receiving country. With higher wages and more jobs, the income of the entire country rises as well. This in turn spurs economic growth. Large corporations usually offer higher salaries than what you would normally find in that country; this leads to an increase in income. Creation of New Jobs Foreign direct investment assumes the creation of new jobs, as well. As investors build new corporations in these countries they create new job openings and opportunities. This leads to an increment in income and the development of competition. New jobs offer more buying power to the population of that country which in turn leads to economic boosts. Overall Economic Growth All the above factors of foreign direct investment lead to economic growth. This is the increase of real gross domestic product, also known as the GDP. This growth is a percentage that changes from one year to the next. Economic growth can also be negative, but a country with the advantages of foreign direct investment will generally have positive economic growth. Economic growth is heavily impacted by changes in technology and the introduction of new technology. A very good example of an economic-growth-boosting technology is the introduction of the Internet.

How can you secure a sound environment for a foreign investment?

Not sure what you mean by sound environment. I would consider a sound environment to be a reputable investment company with a documented track record. If you investing by buying securities or funds, there are some great bond funds such as Templeton Global Bond Fund. Bond funds currently offer best return for low to moderate risk. That is where the smart money is going now. Look for some changes in investment strategy in about 9 months. Stay out of the stock market for now, also CDs. I wouldn't invest directly with any foreign company. There is no way to cover your back.

Why do you think GE has invested so aggressively in foreign expansion?

In order for a company to grow at a rapid pace, it would have to take over other companies that are in financial jeopardy. GE saw a great opportunity to expand the company. Going international allowed the company to reach millions and millions of new customers that are located in these countries. GE knew that by going international that their revenue would increase by over 40 percent. I think that GE acted so aggressively because if they didnt then another company would have grabbed the opportunity and purchase the companies that were in trouble. Other companies could have also formed there and that would have made it harder for GE to establish their business in other countries. Some companies may object to a foreign company trying to establish a company on their land but by buying out the businesses that were in financial trouble, GE came out as the heroes. They helped to save the jobs that these companies were offering and they helped their economy stay afloat. GE also acted so aggressively because they wanted the revenue that it would produce. I think that GE is trying to exploit lower wages. I feel that just like most American manufactures, they are always trying to find ways to reduce their costs. Moving to other countries would mean lower costs in labor hours for General Electric.

What are sources of foreign direct investment?

an individual; a group of related individuals; an incorporated or unincorporated entity; a public company or private company; a group of related enterprises; a government body; an estate (law), trust or other societal organisation;

Which is better domestic investment or foreign investment?

Either investments can be successful ones based on the economic factors at any given time. In some situations the answer is obvious. For example, if a person has funds to invest and lives in a poor and backward economy, it would seem prudent to invest in better economies overseas. In other situations where the domestic economy and foreign ones as well, it cannot hurt to place part of one's investments overseas and some domestically. The advantage of investing domestically, assuming a healthy economy, is that companies one might be invested in can be closely watched better than overseas companies.

Why do the MNCs make investment in foreign countries?

There are several reasons: - Cheap labor costs - Closer to natural resources - Favorable laws and regulations - Enters a potential market => increased customer base - If setting up the business => eliminate need to pay tariff.

What are the important of foreign direct investment?

Foreign Direct Play key role in 4 major ways 1. The Relation of both countries grow. 2. New jobs created 3. Economy of the country in which investment done grow. 4. In some ways new products introduced and technology also transfer.

How you can trading with out any investment in foreign trading?

Trading in difficult financial instruments, such as Actions,Futures, Currency pair ("Forex"), Contracts on a difference("CFD"), Indexes, Opciony and other derivatives of financialinstruments, carry the high level of risk and not always befit oneor another investor. There is probability, that you can bear thepartial or complete loss of your initial investments, thus, youmust not invest facilities which you can not take the liberty tolose. Anymore in detail look here fxfinpro.com/en

What is meant by Indirect Investing?

The sale of a good or service by a third-party, such as a partner or affiliate, rather than a company's personnel. Indirect sales can allow a company to increase sales quickly without having to hire more sales personnel. In some cases, however, indirect sales may lead to reduced control of the brand message and poorer customer service because the company cannot manage indirect sales teams easily.

Where can one learn more on foreign direct investments?

The UN Conference on Trade and Development (UNCTAD) determined that in 2011, Liberia had the greatest influx of money due to foreign direct investments, or FDI. The World Trade Organization also regulates trade between many countries. Both of these groups would be good places to start investigating FDI.

Where can one find information on foreign investments?

There are a few different online websites that contain information of foreign investments. A few of these online websites include Site-by-Site The International Investment Portal & Research, Barclay's Wealth, and International Investment Information.