Q7 of 141 Page 466

What is meant by foreign investment?

Foreign investment means the direct flow of capital from one country to another for ownership of domestic companies and assets.


Foreign investment is important for the growth of the economy of a country. A large inflow of foreign investment is required to increase the pace of economic development. There are 3 different types of Foreign investment - Foreign Direct Investment, Foreign portfolio investment, and Foreign Institutional Investment.


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