Portfolio investment

In contrast to the direct investment is for investors in (foreign ) portfolio investment is not the controlling aspect to the fore. Rather, the investors are interested to participate in the profits of foreign companies in the form of returns. This indirect investment opportunity is recognized in the balance of long-term capital of a national balance of payments. Among the most common portfolio investments include investments in securities such as equities, fixed -income securities and mutual fund shares.

Also in the portfolio investments of the economically rational motto is: " capital has a rational logic, it will go where it can make money, it will make logical decisions on where and how to invest it. If he does not like a particular region or a particular industry, it goes somewhere else. Governments and societies that are beyond this market logic are punished " ( source " motto ": Paul Kennedy 1996).

In the financial account, in addition to corporate investments and lending and derivatives are considered as indirect foreign investment.

• Foreign Trade
• Financial market