Foreign Investors

Definition

Foreign investors are individuals or entities from one country who invest in the financial markets or assets of another country. They provide capital, expertise, and contribute to economic growth in the host country.

Analogy

Imagine a group of international students coming to your school and participating in various activities. Similarly, foreign investors come to a different country and actively participate in its economy by investing their money.

Related terms

Sovereign Wealth Funds: Sovereign wealth funds are investment funds owned by governments that invest in foreign financial assets for long-term returns.

Multinational Corporations (MNCs): MNCs are companies that operate in multiple countries, with headquarters usually located in one country and subsidiaries or branches in others.

Foreign Direct Investment (FDI): FDI is a type of investment made by foreign companies into domestic businesses or infrastructure, often involving ownership stakes and long-term commitments.