Foreign Direct Investment

Japanese: 海外直接投資 - かいがいちょくせつとうし

Investing capital overseas to conduct business in order to make profits. In contrast, indirect overseas investment is the pursuit of only financial profits through the acquisition of stocks and bonds. Direct investment is riskier, and because the capital is in the form of physical assets such as production equipment, it takes a long time to recover the principal. Originally, it was considered a means to overcome trade barriers such as high tariffs in foreign countries, but with the emergence of multinational corporations and the removal of trade barriers through free trade policies, it has become a standard method of management strategy for large corporations in advanced industrial countries.

Source: Encyclopaedia Britannica Concise Encyclopedia About Encyclopaedia Britannica Concise Encyclopedia Information

Japanese:

利潤獲得のため海外に資本を投下し事業を営むこと。これに対し株式，債券の取得などによる金融利潤だけを追求するものが海外間接投資である。直接投資のほうが危険は大きく，また資本が生産設備など現物形態をとるため元本の回収に長期間を要する。もと外国の高関税など通商上の障壁を乗越えるための手段とされたが，多国籍企業の出現，自由貿易政策による通商障壁撤去などにより，先進工業国大企業の経営戦略の定型的一手段となるにいたった。

出典　ブリタニカ国際大百科事典小項目事典ブリタニカ国際大百科事典小項目事典について　情報

<<: Overseas investment

>>: Overseas coal - Kaigaitan