Foreign investment refers to the investment made by individuals or companies in one country into assets or businesses in another country. This can include purchasing stocks, real estate, or establishing new operations. Foreign investment is often seen as a way to stimulate economic growth and create jobs in the host country. There are two main types of foreign investment: foreign direct investment (FDI) and foreign portfolio investment (FPI). FDI involves a long-term interest and significant control over a business, while FPI is more about buying shares or bonds without direct control. Both types can contribute to the economic development of the host nation.