Is foreign capital also called? Overseas investment? , mainly refers to the country's investment in other countries or regions in order to earn foreign exchange income or enter foreign markets. Generally speaking, it is an activity that developing countries invest in other countries in order to better develop their own economy from the perspective of long-term interests and in the case of insufficient development funds. This is a world economic phenomenon formed after World War II, which is beneficial to the economic development of developing countries. Foreign investment is classified according to different forms.

First, different investment periods can generally be divided into long-term investment and short-term investment. Long-term investment is a securities investment that has been owned for more than one year. Not ready to cash at any time, you can invest in cash and intangible assets for a long time. At the same time, it will face great risks.

Short-term investment is a portfolio investment that does not exceed one year and can be realized at any time. You can use cash, intangible assets, etc. For short-term investment. Although the income is not high, it is safe.

Second, the different property rights formed by investment can generally be divided into debt investment and equity investment. Invest in creditor's rights by purchasing bonds. The investee is in debt and the investor is a creditor. This method has less income and high security.

Invest in equity by buying stocks, etc. Investors own each other's shares and hold shares, and can invest in various ways. This way has high returns and high risks.

Three, different investment methods can generally be divided into physical investment and securities investment. Physical investment is investors' investment in money. Investors will contact the other company, but this method takes too long and is slow to realize.

Securities investment is to invest by buying stocks, bonds, etc. Without direct production and operation, it can only be carried out with funds.

At present, China government encourages all enterprises to invest abroad to develop China's economy, so that China can develop faster. These foreign-funded enterprises have also become the potential strength of China.