Foreign Investment

FOREIGN INVESTMENT

In this work the points covered in Chapter 9 of the foreign investment , will be presented in this chapter can realize everything that involves investing , the barriers and other factors that will be developed in this essay.

The decision to invest is not unlike the decision to invest much or little . Whether domestic or international, the decision to invest the amount of capital available to invest it based on expected returns , as well. The higher the expectation , the greater the expected level of investment. However, there are other factors that go beyond this you can determine whether the investor will invest as much or as little of their economic substance of a project. These can vary depending on whether the market is national or foreign

The basic variables are the sum of the excess liquidity at their disposal, the demand for funds and their own personal assessment of the risks involved. These can both make the initial decision to invest and, depending on the intensity of these variables, the decision to invest more or less in a project. For example , if the past history of a specific market or investment company is excellent, then this may be the main determinant to invest more of their money .

For foreign investments , things like political stability , the level of market development and the existence of incentives and tax breaks can be major determinants of strongly or slightly invest in that market.

Other factors that serve to mix both levels of foreign and domestic investment . These include the general expectation of rates of future economic interests , and government regulations . A widely touted as a point of "take off" economy will attract a great investment, especially if the regulatory regime is considered transparent and predictable. If interest rates are low, it might be time to borrow , which can help you make the decision to invest , and , in turn , to invest more in a project that you would at higher rates. This in turn implies that the stability of the banking system in general is also an important determinant of investment levels and investment .

Governmental and political issues are also important. Whether foreign or domestic , the level of capital gains it is an important determinant of investment levels , since the lower the speed, the gain of the project can be maintained. For foreign investment decisions , if a company considers that the local currency is up in value , the level of investment could be less than it could have been, because the currency will make greater exports more expensive there.

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