Inward Investment

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Search Theory

    A study of buyers and sellers who cannot instantly find a commerce ...
  2. Strategic Buyer

    A type of buyer in an acquisition that has a specific reason ...
  3. Asset

    1. A resource with economic value that an individual, corporation ...
  4. Investment

    An asset or item that is purchased with the hope that it will ...
  5. Mergers And Acquisitions - M&A

    A general term used to refer to the consolidation of companies. ...
  6. Conglomerate Merger

    A merger between firms that are involved in totally unrelated ...
Related Articles
  1. Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. Investing Basics

    The Merger - What To Do When Companies ...

  3. Forex Education

    Mergers & Acquisitions: An Avenue For ...

  4. Active Trading Fundamentals

    Trade Takeover Stocks With Merger Arbitrage

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center