- The investment of money into a company in another country. There are many reasons why an individual or entity may choose to invest their money into a foreign business including lower taxes, lower wages, skilled workers, or less stringent regulations. Each nation has specific rules regulating foreign investment. The Investment Canada Act allows the Canadian government to reject foreign investments of "significant" size if the government doesn't consider the investment a "net benefit to Canada." Also known as "foreign direct investment."
foreign direct investment
Related Terms and Acronyms
- Capital — Definition,
- Money that is used to make money; for example, to buy rental property or a business.
- Foreign Currency (FCY) — Acronym,
- Paper money and coins from other countries.
- Foreign Exchange (F/X, FX, FOREX, FE) — Acronym,
➥ Bank account transaction code.
- Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).
- Gross National Product (GNP) — Acronym,
- The value of all goods and services accruing to Canadians in a given year. It equals Gross Domestic Product, plus income of Canadians from foreign production, less income from Canadian production earned by non-residents (such as interest and dividends paid to foreign lenders).
- Investment — Definition,
- Something you put your money into in order to make money.
- Investment Canada Act (ICA) — Acronym, Canada,
- A Canadian law that gives the government power to deny foreign investments of "significant" size if they fail to provide a "net benefit to Canada."
- Monetary Policy — Definition,
- The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.