Foreign investments are an important financial component of the country's well-being.
Foreign investments are investmentsforeign capital in entrepreneurial activity in the territory of Russia in the form of money, securities, non-property and property rights, other property, as well as information and services.
According to the source of origin, foreign investment is divided into private and public.
1) Public investments - funds sent abroad from the state budget, by decision of the government or intergovernmental organizations.
2) Private investment - funds provided by private companies, firms or citizens of one state to the corresponding entity of another state.
In terms of investment, foreign investment is divided into medium-term, short-term and long-term (more than fifteen years).
By nature of use - loan and entrepreneurial.
With loan investments, the funds are loaned for profit in the form of interest.
With entrepreneurial investments, funds are invested in production in order to obtain a certain amount of rights that allow profit in the form of dividends.
Entrepreneurial investments are divided into direct and portfolio foreign investments.
Foreign direct investment in Russia is one of the mostforms of export of private capital, ensuring effective control and the right to dispose of a foreign company. Direct investments are invested in order to obtain long-term interests.
Direct attachments are divided into:
Transcontinental capital investments,conditioned by the best conditions of the markets, that is, by the existence of the possibility to supply the goods of new production to the market of the given continent (country). The main thing at the same time is the presence on the market, costs play an insignificant role. The costs of production will be decisive in determining the country in which it is proposed to create a new production.
Transnational investments are direct investments, often in a neighboring country, whose purpose is to reduce costs relative to the parent company.
The main features of direct investment:
- the absence of the possibility of abrupt withdrawal from markets;
- large amounts of investment and high risk;
- a high period of capital investment;
Portfolio investments are capital investments, whoseThe share of participation in the capital of the organization is below the limit established for direct investments. They do not provide control over foreign organizations, the investor, while receiving a share of profits (dividends).
At present, portfolio investments are playingan increasingly important role. First of all, this is due to the opportunity to conduct various speculative operations, the growth of which was facilitated by a number of factors: the lifting of the restriction of admission of foreign organizations on most stock exchanges, the internationalization of the stock exchange activity, the expansion of bank operations with various securities of various savings institutions.
There are various types of foreigninvestment. However, the success of investing depends on the correct choice of one form of investment or another. To do this, a foreign investor should study the country's investment climate, which is planned to introduce funds, determined by the level of economic and political stability, the stability of monetary units and other factors.
The level at which foreigninvestment in the economy of a country is an important indicator of its financial stability and well-being. According to economic laws, the higher it is, the more prosperous and successful the state is, and the higher is usually the higher, in the final analysis, the standard of living of ordinary citizens.
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