[Date Prev][Date Next][Thread Prev][Thread Next][Date Index ][Thread Index ]

"Foreign Direct Investment"



I am thinking you might be wanting to know the following. I will keep 
the address of individual who gave the following answer because I didn't 
ask his permission.

---------- Forwarded message ----------
Date: Tue, 31 Oct 95 22:41:24 EWT
To: tmyint@xxxxxxxxxxxxxxxxxxxxxx
Subject: FDI

To put them simply,
 
Foreign Direct Investment:
When General Motors Co. wants to establish a car manufacturing company in 
Japan by bringing in its own money from US (we usually call that money " 
capital"), it is called foreign direct investment.  It does not matter 
whether GM established a dummy company in Bermuda through which it sends 
money to Japan.
 
Indirect Investment
When an American (It does not matter whether it is individual or a company) 
buys shares of Toyota just for stock investment purpose, it is called 
"Indirect Investment".