Under foreign investment refers to investment of foreign capital in business activities on the territory of Russia in the form of cash, securities, property and non-property rights, and other property, as well as information and services.
Resources foreign investments are 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 nationals of the States of the subject of another state.
In terms of foreign investment are divided into medium-term, short and long term (more than fifteen years).
By the nature of the use - and business lending.When
investment loan funds are provided on loan in order to profit from interest.When
entrepreneurial investment funds are invested in production in order to obtain a certain amount of rights that allow a profit in dividends.
Entrepreneurial investments are divided into direct and portfolio foreign investment.
Foreign direct investment in Russia - one of the forms of export of private capital to ensure effective control and the right to dispose of the foreign company.Direct investments are made in order to obtain long-term interests.
direct investments are divided into:
Transcontinental investments due to better market conditions, that is, the existence of the possibility to deliver the goods to the market a new production of the continent (of the country).The main thing with this - the presence on the market, costs play a minor role.Production costs will be decisive in determining the country in which it is intended to create a new production.
transnational investments - are the direct investments, often in the neighboring country, which aim to decrease costs with respect to the parent company.
main features of direct investment:
- lack of a sharp departure from the market;
- large amounts of investments and high risk;
- term high capital investments;
Portfolio investment - investment, whose share in the capital of the organization below the limit for direct investment.They do not provide control over foreign organizations, investors, thus receives a share of profits (dividends).
Currently, portfolio investments are playing an increasing role.First of all, it will be possible due to the various speculative operations, which contributed to the growth of a number of factors: the removal of restrictions on the admission of foreign companies most of the stock exchanges, the internationalization of the activities of the stock exchange, the expansion of banks' operations with the various securities of various savings institutions.
There are various types of foreign investment.However, the success of the investment depends on the correct choice of one or another form of investment.For this purpose a foreign investor should study the investment climate of the country, which is scheduled to enter the funds determined by the level of economic and political stability, currency stability and other factors.
level at which there are foreign investments in the economy of a country is an important indicator of its financial stability and prosperity.According to economic laws, the higher it is, so, consequently, more prosperous and more successful state and the generally higher, ultimately, the standard of living of ordinary citizens.
