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

Foreign investment is when a company or individual from one nation invests in assets or ownership stakes of a company based in another nation. As increased globalization in business has occurred, it’s become very common for big companies to branch out and invest money in companies located in other countries. These companies may be opening up new manufacturing plants and attracted to cheaper labor, production, and fewer taxes in another country. They may make a foreign investment in another firm outside of their country because the firm being purchased has specific technology, products, or access to additional customers that the purchasing firm wants. Over all, in a country is a good sign that often leads to growth of jobs and income. As more it comes into a country, it can lead to even greater investments because others see the country as economically stable.