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What is the foreign direct investment?

Definition of foreign investment
Definition of foreign investment
Foreign direct investment can be defined in a simple way as the investment of a company in projects located outside the borders of the mother country. 
This is what we find today in the international arena represented by "multinational companies" which could develop into economic colonialism.

Types of foreign direct investment

We find that there are two types of foreign investments:
  1. Public investments from the governments of foreign countries.
  2. Private investments are from private companies and institutions from different countries.

When do countries resort to attracting foreign direct investment?

Usually, countries resort to foreign direct investment when domestic savings are insufficient to cover the needs of the state, to finance investment projects, and accelerate development in the country.
Foreign investment here is considered important support for the developing country to face the deficit in national savings available for investment.
باحث اقتصادي هدفي إنشاء موسوعة عن الدول العربية توضح جوانب القوة في كل دولة، واتمني أن يأتي اليوم الذي يتحد فيه العرب لتعم الفائدة علي كل الشعوب.


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