Professional Documents
Culture Documents
Umair Ahmad
Usama Ali
Ummay Saadqua
Tuba Ahmad
Wasim Siddiqui
BBA 6th Sem, Sec B
FOREIGN CAPITAL
Increase in resources
Risk taking
Technical know-how
High standards
Marketing facilities
Increased competition
TYPES OF FOREIGN
CAPITAL
TYPES OF FOREIGN
CAPITAL
Foreign aid : It consist of loans and grants. Loans
may be taken from individual countries or from
institutional agencies like World Bank, IMF and
international financial Corporation .Usually loans
are taken for medium and long term capital
needs of a country.
Private foreign investment: Foreign investment
and collaboration with a foreign nation are
closely interrelated, but they are different from
each other.
ADVANTAGES OF
FOREIGN INVESTMENT
Economic development stimulation
Easy international trade
Employment and economic boost
Development of human capital resource
Tax and incentives
Resources transfer
Reduced disparity between revenue and costs.
Increased productivity
Increment in income
FOREIGN DIRECT
INVESTMENT
Foreign direct investment (FDI) is an investment in
a business by an investor from another country
for which the foreign investor has control over the
company purchased.
The Organization of Economic Cooperation and
Development (OECD) defines control as owning
10% or more of the business.
Businesses that make foreign direct investments
are often called multinational corporations
(MNCs) or multinational enterprises (MNEs)..
TYPES OF FDI