Foreign Investment

Foreign investment refers to the inflow of capital from international sources into a country to engage in business or production activities. This type of investment can come in the form of direct investments, where foreign investors take an active role in managing the businesses in which they have invested, or portfolio investments, which involve the purchase of stocks and bonds. Foreign investment is crucial for economic growth as it often brings in not only capital but also expertise, technology, and jobs, thus fostering the development of various sectors within the host country. Additionally, it can contribute to a more competitive market landscape and stimulate local enterprises to innovate and improve their services and products.