FOREIGN INVESTMENT RISK || TRAINER ANIL MAURYA
Objective of the E- BOOK To learn about the foreign investment risk Key Learnings from the E-BOOK 1. Concept of Foreign Investment and Foreign Investment Risk Foreign investments are of the following 2 types: a. Direct investment: It means physical investment in other countries by purchasing machines, building, and factory. b. Indirect investment: It means to purchase shareholdings and stakes in the companies operating in other countries. There are chances of losses in both the direct and indirect investments. The chance of losses on foreign investment is known as foreign investment risk. 2. Types of Foreign Investment Risk An investor has to bear the following type of risks in foreign investment: a. Higher transaction cost: An investor need to pay the following additional charges while doing foreign investment: i. Extra stamp duty ii. Clearing fees iii. Exchange fees iv. Broker commission b. Currency risk: The investment value also...