• Foreign investment refers to a foreign investor’s investment in domestic companies and assets of another country.

  • Large transnational corporations will look for new opportunities for economic growth by opening branches and expanding their investments in other countries.
  • Foreign direct investment includes long-term physical investments made by a company in another country, such as opening factories or buying buildings.
  • Foreign indirect investment includes corporations, financial institutions and private investors who buy shares of foreign companies that are traded on a foreign stock exchange.
  • Commercial loans are another type of foreign investment and include bank loans issued by domestic banks to enterprises in foreign countries or governments of these countries.