|
|
Foreign investment argument for protection |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Foreign investment argument for protectionThe use of protection to attract FDI from abroad. It does work, since much FDI has been motivated by firms trying to get behind a tariff wall to sell their products. In an otherwise nondistorted economy, however, the cost in terms of more expensive goods is higher than the benefit from additional capital.Similar MatchesForeign portfolio investmentForeign portfolio investmentPortfolio investment across national borders and/or across currencies. Capital investmentCapital investmentSee: Capital expenditure. Investment managerInvestment managerThe individual who manages a portfolio of investments. Also called a portfolio manager or a money manager. Investment trustInvestment trustA company quoted on the London Stock Exchange which invests its shareholders' funds in the shares of other companies.Points to note about investment trusts are:They enable private investors with limited funds to get diversified share ownership and without incurring heavy dealing costs.They enable investors to get exposure to markets that they may not be able to reach themselves (e.g. to emerging countries). Different trusts also have differing objectives (e.g. growth or income).They enable investors who don't have the skill or inclination to invest directly in companies to get the advantage of professional fund management (although see point below 6)It is easy for investors to drip-feed money into investment trusts over time by using a monthly savings plans.Unlike unit trusts, investment trusts are closed end funds. That is, there is a fixed number of shares in circulation, and the price of those shares is determined like other quoted shares - by supply and demand. This means that IT shares often trade at a discount to their Net Asset value (i.e. the value of their underlying investments) and it also makes IT shares more volatile than unit trust prices.ITs are actively managed funds which try to produce total returns better than the market average. However once management charges are taken into account, they often fail to meet this target. Hence the move by many investors to passive funds - trackers and index funds - which have lower charges. Undertakings for Collective Investment in Tradable SecuritiesUndertakings for Collective Investment in Tradable SecuritiesUCITs are collective funds which can be sold across national borders within the EU in accordance with the 'Undertakings for Collective Investment in Tradable Securities' Directive. For UK investors, one of their significance attributes is they can be sheltered from tax within the Stocks and Shares component of an ISA. Further SuggestionsDirect Foreign InvestmentAlternative Investment Market Investment Company Institute (ICI) Target investment mix Normal investment practice Alternative investments Brown field investment protected investment products Investment climate Passive investment management dividend reinvestment plan Trade and investment Passive investment strategy Investment management Investment Advisers Act Net investment income per share return on investment Automatic reinvestment local authority investment Guaranteed investment contract (GIC) Investment Management Regulatory Organisation ethical investment Trade-related investment measure Zero investment portfolio Reinvestment |
|
|
|