Foreign investment refers to the process where individuals, companies, or governments from one country invest money in businesses or assets located in another country. This can take many forms, such as buying stocks, purchasing real estate, or establishing new businesses. The goal is often to earn a profit or gain access to new markets and resources.
When foreign investment occurs, it can benefit both the investor and the host country. For instance, the host country may receive much-needed capital, which can help create jobs and stimulate economic growth. Meanwhile, investors like multinational corporations can expand their operations and increase their global presence.