Foreign Direct Investment http://www.profitableinvestingtips.com/investing-tips/foreign-direct-investment Follow the money is age old advice for knowing why something is happening. In this case we would like to follow the money that goes into foreign direct investment. Foreign direct investment is done by folks with lots of money and the intention to stay a course and make a profit. If you are looking for offshore investment ideas, take a look at where foreign direct investment goes year after year after year. There have been changes afoot regarding where foreign direct investment is going. A very useful reference in this regard is the just published United Nations study, World Investment Report 2013. We have used 2007 and 2012 as bookend comparison years as 2007 was just before the onset of the worst recession in three quarters of a century and 2012 is the most recent year reported. Of note is that direct foreign investment has fallen in the large majority of nations but there are exceptions that should help guide investors with their fundamental analysis of where to put their money in the years ahead. First take a look at the data and then read about foreign direct investment. Foreign Direct Investment Comparison of 2007 and 2012 In Billions of USD Taken from the United Nations World Investment Report 2013 European Union 859 323 UK 200 71 France 96 37 Germany 80 67 Canada 117 54 USA 216 329 Mexico 31 26 Japan 23 123 China 84 84 China, Hong Kong 62 83 South Korea 9 33 India 25 9 South Africa 6 4 Russian Federation 57 51 Brazil 35 -3 The largest gain in foreign direct investment on our chart is in the USA followed closely by Japan (113 billion to 100 billion. As a percentage increase Japan out performs everyone with an increase of more than 400%. Other significant performers are South Korea with a more than 200% increase in foreign direct investment and Hong Kong with a twenty-five percent increase. It is significant that the BRICS nations which were thought to be ready to move up economically lost as a group. China stayed put at $84 Billion. Russia fell from $57 Billion to $52 Billion and South Africa fell from $6 Billion to $4 Billion. Brazil fell off the charts going from $35 Billion in direct foreign investment to a negative $3 Billion because investors are taking money out of the country! Direct Foreign Investment: What Is It and Why Do It? In general, foreign direct investment includes mergers and acquisitions, the building of new facilities, reinvestment of profits earned overseas and cross border loans within offshore operations. Basically companies invest offshore because they expect to make a profit over the long term. Because of the long timeline needed to research new projects and develop them, this sort of investment is typically well thought out. Reasons to invest offshore aside from expected profits

1. FOREIGN DIRECT
INVESTMENT
By
www.ProfitableInvestingTips.com

2. Follow the money is age old advice for
knowing why something is happening.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

3. In this case we would like to follow the
money that goes into foreign direct
investment.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

4. Before We Continue…
Click the links below to get your
Free training materials.
FREE Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com

5. Foreign direct investment is done by folks
with lots of money and the intention to stay a
course and make a profit.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

6. If you are looking for offshore investment
ideas, take a look at where foreign direct
investment goes year after year after year.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

7. There have been changes afoot regarding
where foreign direct investment is going.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

8. A very useful reference in this regard is the
just published United Nations study, World
Investment Report 2013.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

9. We have used 2007 and 2012 as bookend
comparison years as 2007 was just before
the onset of the worst recession in three
quarters of a century and 2012 is the most
recent year reported.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

10. Of note is that direct foreign investment has
fallen in the large majority of nations but
there are exceptions that should help guide
investors with their fundamental analysis of
where to put their money in the years
ahead.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

11. First take a look at the data and then read
about foreign direct investment.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

12. Foreign Direct Investment Comparison of 2007 and 2012
In Billions of USD
Taken from the United Nations World Investment Report 2013
Nation
2007
2012
European Union
859
323
UK
200
71
France
96
37
Germany
80
67
North America, incl. Mexico
363
408
Canada
117
54
USA
216
329
Mexico
31
26
Japan
23
123
China
84
84
China, Hong Kong
62
83
South Korea
9
33
India
25
9
South Africa
6
4
Russian Federation
57
51
Brazil
35
-3
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

13. The largest gain in foreign direct investment
on our chart is in the USA followed closely
by Japan (113 billion to 100 billion).
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

14. As a percentage increase Japan out
performs everyone with an increase of more
than 400%.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

15. Other significant performers are South
Korea with a more than 200% increase in
foreign direct investment and Hong Kong
with a twenty-five percent increase.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

16. It is significant that the BRICS nations which
were thought to be ready to move up
economically lost as a group.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

17. China stayed put at $84 Billion. Russia fell
from $57 Billion to $52 Billion and South
Africa fell from $6 Billion to $4 Billion.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

18. Brazil fell off the charts going from $35
Billion in direct foreign investment to a
negative $3 Billion because investors are
taking money out of the country!
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

19. Direct Foreign
Investment: What Is
It and Why Do It?
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

20. In general, foreign direct investment
includes mergers and acquisitions, the
building of new facilities, reinvestment of
profits earned overseas and cross border
loans within offshore operations.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

21. Basically companies invest offshore
because they expect to make a profit over
the long term.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

22. Because of the long timeline needed to
research new projects and develop them,
this sort of investment is typically well
thought out.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

23. Reasons to invest offshore aside from
expected profits include low taxes, tax
holidays of the twenty-five year or longer
variety, preferential tariffs, investment loan
subsidies, free land or land subsidies, R&D
support, proximity to profitable markets and
more.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

24. Can You Follow the
Money and Make a
Profit?
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

25. There are some useful lessons to be
learned from the reading the results of the
World Investment Report 2013.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

26. A lot of the hype about Brazil and the rest of
the BRICS nations was largely that, just
hype. Brazil is attached at the hip to China
and when events in China trigger the next
big stock market crash Brazil will suffer.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

27. Money is going where there is economic,
social and political stability, high end
technology, democracy instead of
dictatorship and nations that are interested
in getting foreign investment instead of
driving it away.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

28. Hong Kong is preferred over China because
of the democratic residual from British
colonial days.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

29. Japan is in an economic resurgence and
Korea is largely keeping pace.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

30. The USA remains the most economically
open economy and thus benefits the most
from direct foreign investment during
troubled times.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment

31. When you decide where to put your money
look for growing economies and economic
sectors, tax advantages to your investment
in a given economy and political stability so
that the next government does not decide to
confiscate your investment.
http://www.profitableinvestingtips.com/investing
-tips/foreign-direct-investment