Inward Investment

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DEFINITION of 'Inward Investment '

The opposite of outward investment, an inward investment involves an external or foreign entity either investing in or purchasing the goods of a local economy. A common type of inward investment is a foreign direct investment (FDI). This occurs when one company purchases another business or establishes new operations for an existing business in a country different than the investing company's origin.

BREAKING DOWN 'Inward Investment '

Inward investments or foreign direct investments result in a significant number of mergers and acquisitions. Rather than creating new businesses or factorings, inward investments often occur when a foreign company acquires or merges with an existing company. Inward investments tend to help companies grow and open borders for international integration.

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