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Currently there is a trend toward globalization whereby large, multinational firms often have investments in a great variety of countries. Many see foreign investment in a country as a positive sign and as a source for future economic growth. The U.S. Commerce Department encourages foreign investment through its Invest in America initiative.

1 Causes a flow of money into the economy which stimulates economic activity 2 Employment will increase 3 Long run aggregate supply will shift outwards

4 Aggregate demand will also shift outwards as investment is a component of Aggregate demand

Inflation may increase slightly

2 Domestic firms may suffer if they are relatively uncompetitive

3 If there is a lot of FDI into one industry e.g. the automotive industry then a country can become too dependent on it and it may turn into a risk that is why countries like the Czech Republic are "seeking to attract high value-added services such as research and development (e.g.) biotechnology)" 4 Foreign investment creates employment, and can lead to technological development through technology transfers.

When it comes to investment, many people turn to foreign companies to invest in. People want to invest in other countries businesses because of their economies. You may find that another nations economy is much better than your own, and you can see a larger profit by investing in their businesses. Businesses want foreigners to invest in their companies because it helps their business grow and spread to other nations. If you are interested in foreign investment, you should consider the four

different types and decide which type of investment you will use.
Companies such as GreatPlainsLending can help give you information and even issue loans.

There are two different types of foreign loan investments, including commercial loans and official loans. A commercial loan is a loan granted for the use of a business, rather than for personal use. Commercial loansare generally short-term loans issued to foreign businesses.

foreign company planning to set up b usiness operations in India may: Incorporate a company under the Companies Act, 1956, as a Joint Venture or a Wholly Owned Subsidiary. Set up a Liaison Office / Representative Office or a Project Office or a Branch Office of the foreign company which can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office or Other Place Ans. An of Business) Regulations, 2000.