Definition, How It Works, and Types
Foreign investment represents part of the elaborate web of financial relationships between nations and corporations. It’s a force that can transform skylines, revitalize industries, and reshape the economic destinies of entire regions. But it’s also a phenomenon that raises critical questions about economic sovereignty, democratic preservation, and global power balance.
For the purposes of this article, we’ll focus on foreign investment in its contemporary economic sense, leaving aside foreign aid and the investments in human capital and development by one country in another. We’ll also set aside, at least explicitly, the historical context of military colonialism and imperialism that has long been intertwined with foreign…
