Breaking News

foreign indirect investment Characteristics

- Confined to swap and trade in the international and domestic securities in foreign financial markets for the investor.

- The main objective is to get a rate of return and capital gains in foreign countries that are higher than those achieved in the domestic market.

- Characterized by rapid movement to and from the domestic and international markets, so it is usually called "hot money" in the securities markets.

- The participation of foreign investor is by money only without the right to the management and decision-making or control over the project (only when a certain percentage of ownership determined by the host country).

-  It's considered an important source of funding for the state and the various participating companies in the market.

- Usually cause severe gastric crises.

No comments