Investing abroad or international capital flows
International capital flows - is a foreign investment. Investor invests its money in a foreign company and receives profit from its activities or earns interest on loans, deposits and so on. It depends on whether it is more convenient for the investor to set up his own foreign business or to lend money to a company so that it pays him interest on its income. Of course, the first option is more profitable, but also more risky, because the investor must choose a firm whose business will really grow uphill, otherwise he will not get any profit, only additional losses. Unfortunately, this happens quite often, especially during a real financial crisis. Many organizations go bankrupt, and their shareholders lose money along with them.
International capital movement - is it profitable?
I guess the patriots would say it's much better to invest investments in domestic companies. Firstly, in this way, the player helps Russian entrepreneurship, and thus his country. And secondly, the investor is much better able to analyze the state of the domestic company, because he knows exactly what factors influence its development. In fact, this is really true. Some investors may not know what taxes organizations from other countries pay, what difficulties they face. Therefore, the international movement of capital often becomes very problematic for them. But at the same time, the benefit that the trader will get in case of a successful transaction will be much greater. As a rule, successful companies abroad get much higher profits, especially if they are large companies with branches all over the world. However, the shares of such corporations are quite expensive, not many investors can afford to buy such assets. The more shares should be bought, the more, the better - then the benefit will be greater.
International capital flows as a contribution to business
As a rule, foreign companies are decided to acquire only experienced traderswho have already learned to properly manage their capital, have sufficient work experience, and have a good idea of how to organize their business. International capital flows There is also a scheme where an investor buys an unprofitable company, completely rebuilds it (in fact, sets up his own business on its ruins) and fully restores the enterprise's capacity, becoming its director and making a huge profit from it. But such investments are even rarer, as players usually prefer to invest their capital in a developed corporation and then get a huge profit from it. dividends. It is considered to be more reliable, albeit less profitable.
International capital flows as lending
The player can also buy bonds of different countries. This is a kind of form of lending to certain government organizations. In this case, over time, the player receives a certain percentage. Such international capital movement seems to many people more reliable than the previous option, because bonds are paid out more frequently. Although, if an unforeseen situation occurs in the country (especially if the country is undeveloped), the investor may not get his money. The main thing here is to get the timing right - when taxation in the country is going up. Then the state will have money to pay the bills.