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Foreign portfolio investing differs from foreign direct investing. The former simply involves buying stocks or other investment vehicles from another country. The later involves a company investing money in a country different than the one it is incorporated in. Foreign direct investing can take the form of mergers and acquisitions, building new facilities, reinvesting profit earned in other countries, and intercompany loans. The company must also have a controlling interest (greater than 10% ownership) in the enterprise. Types of foreign direct investment include, horizontal, vertical, conglomerate, and platform. There are pros and cons associated with foreign direct investments. Pros include providing financing and technology to developing economies. Cons include moral and ethical concerns. #foreigndirectinvestment #investing #investment #investments #developmentfunding #cfainstitute #corporationtax #corporations #conglomerate #subsidiary