Foreign investments are investments.foreign capital in entrepreneurial activity on the territory of Russia in the form of cash, securities, non-property and property rights, other property, as well as information and services.
By source of origin, foreign investment is divided into private and public.
1) Public investment - 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 relevant subject of another state.
In terms of investments, foreign investments are divided into medium-term, short-term and long-term (more than fifteen years).
By the nature of use - loan and entrepreneurial.
In case of loan investments, funds are lent for the purpose of receiving profit in the form of interest.
When entrepreneurial investments are invested in production in order to obtain a certain amount of rights to make a profit in the form of dividends.
Entrepreneurial investment is divided into direct and portfolio foreign investment.
Foreign direct investment in Russia is one offorms of export of private capital, providing effective control and the right to dispose of a foreign company. Direct investments are made for long-term interest.
Direct investments are divided into:
Transcontinental investmentdue to the best conditions of the markets, that is, the existence of the ability to deliver goods of new production to the market of the continent (country). The main thing is being on the market, the costs play a minor role. Production costs will be decisive in determining the country in which it is planned to create a new production.
Transnational investments are direct investments, often in a neighboring country, the purpose of which is to reduce costs relative to the parent company.
The main features of direct investment:
- the inability to abruptly leave the markets;
- large amounts of investments and high risk;
- high term capital investment;
Portfolio investment is an investment whoseThe share of participation in the organization’s capital is below the limit established for direct investments. They do not provide control over foreign organizations, the investor, while receiving a share of the profits (dividends).
Currently, portfolio investments are playingincreasingly important role. First of all, this is due to the opportunity to conduct various speculative operations, the growth of which was promoted by a number of factors: the lifting of the restriction on the admission of foreign organizations on most stock exchanges, the internationalization of the stock exchange, the expansion of banks' operations with various securities of various savings institutions.
Существуют разнообразные виды иностранных investment. However, the success of an investment depends on the correct choice of one or another form of investment. To do this, a foreign investor should study the investment climate of the country in which it 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 there are 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 successful and successful the state is, respectively, and the higher the standard of living of ordinary citizens is usually higher.
