Foreign investment refers to movements of international capital that look for to determine, develop or maintain foreign subsidiaries and (or) exercise management (or important influence) on the management of a distant company
Types of foreign direct investment
In terms of form

As a network builder of overseas subsidiaries, the capitalist might either: produce an entire new, install with new production and rent new staff. this can be known as the creation of FDI to amass a distant entity already exists through acquisition or transfer of possession or in cross-border mergers and acquisitions.
Strategically
Horizontal FDI: associate degree investment all told branches that turn out similar merchandise for the parent company. this sort of foreign direct investment to facilitate investors’ access to foreign markets or to beat sure factors (such as tariff barriers and transport costs) that have an effect on the aggressiveness of exports, investors opt to repeat all stages of production at the target location

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foreign investment supervision, management decision coordination and long term strategy planning and decision making. The extent to which a company can mitigate risk depends on how well a firm can formulate an internationalization strategy taking these levels of decision into account.
Hymer’s importance in the field of International Business and Foreign Direct Investment stems from him being the first to theorize about the existence of Multinational Enterprises (MNE) and the reasons behind Foreign Direct Investment (FDI) beyond macroeconomic principles, his influence on later scholars and theories in International Business, such as the OLI (Ownership, Location and Internationalization) theory by John Dunning and Christos Pitelis which focuses more on transaction costs. Moreover, “the efficiency-value creation component of FDI and MNE activity was further strengthened by two other major scholarly developments in the 1990s: the resource-based (RBV) and evolutionary theories’ (Dunning & Pitelis, 2008) [5] In addition, some of his predictions later materialized, for example the power of supranational bodies such as IMF or the World Bank that increases