Foreign Investment

Foreign investment is when one country (well, the investors in it) invests in businesses and assets that reside in another country. The more foreign investment there is, the more money is flowing across borders into investment vehicles.

What else is flowing over borders with all that money? Voice. The more money foreign investors pump into a project, the more likely they are to have a big say in who gets to be Mr. Manager and how things are done. Like imperialism or colonialism, but all economic instead of government-led.

As the world gets smaller with globalization, firms like Starbucks and Mickey D’s can now be found around the world thanks to foreign investment. Foreign investment is commonly seen as a good thing by liberal economists who believe in a "flat wealth world," since it helps to bridge the wealth gap between nations while uplifting poorer countries with projects and businesses.