What is foreign indirect investment?

what is the difference between direct and indirect foreign investment

In terms of charity, if the government gives a developing economy a cash sum and allows them to spend it within their economy then this is direct investment.

However, it used to be that the government would give these countries the cash, but stipulate that they had to spend it within the donating country's economy. This would be indirect investment.

This practise has thankfully been stopped by the UK anyway as in the long run it only serves to help the donating country!

I have looked this up in my finance books, but it isn't included however I would assume that the principle is somewhat the same, so that the company moves into a foreign market but imports products from the home market. Hope this helps.

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