Foreign investment argument for protection


 

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Foreign investment argument for protection

The 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 Matches

Real estate investment trust

Real estate investment trust

In the US, a publicly traded investment trust which invests the capital of its shareholders in real estates.Some REITs, called 'Equity Reits', take equity positions in real estate, receiving income from rents and capital growth from selling buildings.Others specialise in lending money to property developers, their income coming from interest payments on those loans.Hybrid REITS do a mixture of equity investing and property lending.REITs enjoy special tax advantages provided 75% or more of their income comes from property and 95% or more of their net earnings is distributed to shareholders annually.


Investment philosophy

Investment philosophy

The style and general ideology of investment practiced by an investor. Certain investors favor small-capitalization stocks, while others prefer large blue-chip stocks, for example.


Net investment income per share

Net investment income per share

Income received by an investment company from dividends and interest on investments less administrative expenses, divided by the number of outstanding shares.


Real Estate Investment Trust (REIT)

Real Estate Investment Trust (REIT)

REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund.


Investment trust

Investment trust

A 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.


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Investment bank
Investment software
Investment Management Regulatory Organisation
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Capital investment
Enterprise Investment Scheme
protected investment products
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Investment Advisers Act
Trade and investment
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Foreign direct investment (FDI)
Investment history
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dividend reinvestment plan
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Diversified investment company
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Guaranteed investment contract (GIC)
investment income
Investment letter
Target investment mix


 
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