What is the Meaning of: Foreign investment | Concept and Definition of: Foreign investment

In the economic and financial field, an investment is an investment of capital for future gains. When you decide to invest, one is forced to renounce immediate profit without knowing exactly what future to expect.
By placing money, should take into account three variables: performance expected (that is, how much is expected to win with this investment), the accepted risk (concerning the probabilities to get the expected return) and the time period / maturity (when will the investment yield gains; short, medium or long term).
With regard to foreign investment, it comes to the placement of capital in a foreign country, that is, in a country that is not a one comes money. The concept of foreign direct investment is associated with companies wishing to internationalize and settle in other countries.
With the process of globalization, foreign investment began to live a period of expansion, limited only to times of economic crisis. Globalization includes the free flow of capital, lifting customs restrictions and taxation, the movement of people and goods and other features that help to foreign investment.
The country receiving the investment must take into account its consequences. On one side, foreign investment gives rise to the creation of new jobs and generates revenues for the host country. However, these recipes are returning to the country of origin. In addition, there is mention that very often driven by foreign investment projects cause of environmental damage that may affect the local community.

Note: This translation is provided for educational purposes and may contain errors or be inaccurate.