Advantages And Disadvantages Of Foreign Investment?

Answer 1

If you want to make a bit of money, one way to go about doing it is to consider foreign investment. This is where you put your money into the stocks of foreign companies to make money as their shares increase. There are companies all over the world where this is possible, so you have a lot of different options for how you want to use your money. There are some advantages to foreign investment, but there are a number of disadvantages as well. You should weigh them both before you make any sort of decision about what to do with your money.

One advantage of foreign investment is that it gets your money out of the bad economy in the United States and into the foreign market. Even though the United States has been on a downward swing as of late, other countries are going strong; this is where you want your money to be to have the most success. Another advantage is that you get a lot more options this way and can find businesses to invest in that your really believe in. You can find businesses in other countries that may be very small on the world market but that you feel will grow tremendously in the future. By getting in while the company is not worth very much, you can set yourself up to make quite a lot of money.

One of the disadvantages is that you cannot check the company out for yourself in the same way that you could check out a local company -- unless, of course, you decide to take a trip to the foreign country and stop in to see what they are really like. You can do this if you invest in companies that are close to you, and it can help you to get a feel for the company's future. Being able to talk to the owner and see the operation may show you that a company is geared for success, but you cannot do this if the company is located in Another Country. Researching online before doing any sort of foreign investment can be a good way to fill some of these holes.