types of investments
TYPES OF INVESTMENT
FOREIGN DIRECT INVESTMENT: Foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans. Foreign direct investment refers just to build new facilities. FDI is defined as the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor. FDI is the sum of equity balance, other long-term capital, and short-term capital as shown the balance of payment. FDI usually involves participation in management. There are two types of FDI, inward and outward, resulting in a net FDI inflow and stock of foreign direct investment. Direct investment excludes investment through purchase of share. FDI is one example of international factor movement.
TYPES OF FOREIGN DIRECT INVESTMENT: There are three types of foreign direct investment.
HORIZONTOL FDI: Arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI.
PLATFORM FDI: Foreign direct investment from a source of country into a destination country for the purpose of export to a third country.
VERTICAL FDI: Takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform value-adding activities stage by stage in a vertical fashion in a host country. METHODS: The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods.
1. By incorporating a wholly owned subsidiary or company anywhere.
2. By acquiring shares in an associated enterprise.
3. Through a merger or an acquisition of an unrelated enterprise. FORMS OF FDI: Foreign direct investment incentives
FOREIGN DIRECT INVESTMENT: Foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans. Foreign direct investment refers just to build new facilities. FDI is defined as the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor. FDI is the sum of equity balance, other long-term capital, and short-term capital as shown the balance of payment. FDI usually involves participation in management. There are two types of FDI, inward and outward, resulting in a net FDI inflow and stock of foreign direct investment. Direct investment excludes investment through purchase of share. FDI is one example of international factor movement.
TYPES OF FOREIGN DIRECT INVESTMENT: There are three types of foreign direct investment.
HORIZONTOL FDI: Arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI.
PLATFORM FDI: Foreign direct investment from a source of country into a destination country for the purpose of export to a third country.
VERTICAL FDI: Takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform value-adding activities stage by stage in a vertical fashion in a host country. METHODS: The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods.
1. By incorporating a wholly owned subsidiary or company anywhere.
2. By acquiring shares in an associated enterprise.
3. Through a merger or an acquisition of an unrelated enterprise. FORMS OF FDI: Foreign direct investment incentives