What are the good things and bad things about foreign investment?

are they nessary evils

The good things are (as tough as this sounds) that they force domestic companies to change. If you believe in a free market market economy (and if you actually live in a free market economy) then internationals bring new ideas, new ways of doing things. They create new jobs and they, indirectly, educate people and, provided those people have incentive, they can go on to borrow the best of both and provide consumers (you and I) with choices and sometimes, because of increased competition bring down prices of consumer goods. Better prices for consumers means that 1) people can improve their living standards (good for individuals) and 2) people spend more (good for government (taxes etc.). In theory those taxes go back to the people in terms of services that the government can provide its citizens. This is important because government need taxes to provide and fund services for their citizens.

The bad points are that multinationals, with their "different" ways of doing things can neglect the local customs and habits of doing things, resulting in "cultural erosion". But it's rare (basically) that a company can change a country. Competition is good for the consumer, and we are consumers. In most cases it stimulates local companies to improve the services they offer to consumers. The market decides. The problem is when market forces (consumer choice) are overridden by government protection. This happens when government tries to secure votes by "protecting" the people, but they're usually trying to shore up votes. So you'll see cycles: election far away - no problem with foreign cash coming in to the country. Election close: they'll push a more domestic agenda (they need the votes and foreigners - even just a company - can't vote.) So yes, a necessary "evil", but remember they hire and train local folk in the process. Without it there would be no foreign trade, no global economy. North Korea is a great example of government protection (at the extreme). Not a place that values consumer choice. Hope that helps.

They are good because the have less correlation than your domestic investments, they are bad because it is difficult to keep up with the scheme of things in foreign markets and in particular in China the value of their currency is really meaningless and is changed on a whim by the government.

That being said it's good to have some foreign investment as part of your portfolio for diversifications sake.

an investment is an investment, but not all are created equal. some have a higher potential rate of return but are riskier. investors have to find those financial instruments with which they are comfortable, here, abroad, wherever. all countries seek investors and they don't much care whether they're foreign or not. as investors, we often are willing to invest in other countries' industry or government because there have been success stories in past. but you can't project from the past with investments, and the legal disclaimers are sure to include this fact.

good: more $$ invested that if you didn't seek foreign investment

bad: I can't think of a thing, really unless one is concerned about a single foreign investor holding a majority of the voting stock of a company

AFTER STARTING W.T.O.(WORLD TRADE ORG.) THERE IS BOOST IN FOREIGN INVESTMENT
GOOD THINGS ARE
1. GROWTH OF THE ECONOMY
2.MORE EMPLOYMENT OPPORTUNITY BECAUSE MORE INDUSTRY WILL START
3.VALUE OF CURRENCY WILL INCREASES
4.DEVLOPMENT OF ECONOMY
5.SOCIAL WELFARE AS MORE INDUSTRY & DUE TO COPETITION PRICE TENDS TO LESS
BAD THINGS
1.IF THEY WITHDRAW THER MONEY YOUR GROWTH WILL AFFECTED
2.YOU WILL DEPEND UPON THEM
SO THE GOOD THINGS>BAD THINGS
SO FOREIGN INVESTMENT IS GOOD
GOOD QUESTION

One of the main issues of the last year or two is the currency exchange rate.

If you invest in another country's stock and their currence is going up against the US dollar, then you can make money even if the stock is doing nothing in its own currency.

On the other hand, the foreign stock can be going up gradually, but your holding can go down if the exchange rate is working against you fast enough.

I made a lot of money on a high dividend Canadian stock as long as the US dollar was falling against the Can. dollar. As soon as the exchange rates started moving in the opposite direction, I sold it all.