Foreign direct investment refers to the activity where residents in one country set up a business in another country, or residents of one country acquire major stake and managing shares of an enterprise in another country, with general benchmark of the purchase being at least of 10 percent.
Foreign direct investment does not include the following activities: licensing, subcontract and security portfolio investment, because they do not involve large amount of equity capital, or a significant shift in terms of foreign management control.
Reinvestment refers to any increase in a foreign investor’s shares to the existing investment, including reinvestments on profits and inflows of new capital.
Foreign investors can be either an individual, or a company; its investment can be either wholly foreign-funded, or from a foreign and domestic joint venture.
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When it comes to wealth management, it is highly advised to get help from financial advisor because he will consider all risks and only then he would suggest best options for your goal accomplishment. Even we are getting personal financial planning help for our family these days.