What is foreign investment and its need?

Question

What is foreign investment and its need?

Answer 1

Depends on what context you're thinking about.  If you're American, then investing in a Canadian or a Chinese company is a foreign investment.  You can do this buy buying shares directly on local exchanges, or you can do it by buying ADRs (American Depository Receipts) on the NYSE (or NASDAQ).

The need?  I think all Americans should be diversifying out of the US Dollar.  The Fed is diluting the power of the dollar and trying to put media focus elsewhere.  It's a good idea to be in a strong currency for many complex reasons.

MoneyEnergy

http://www.getmoneyenergy.com

Answer 2

Foreign investment = buying stocks or bonds in companies or governments outside of your country of residence.

It's need?  Foreign markets have different tax rules, interest rates, and growth opportunities.  There is the potential for greater profit in underdeveloped foreign markets.