Broadly defined, includes all asset holdings by foreigners, whether in the form of bank deposits, bonds, stocks, or titles of ownership In the narrow sense, foreign investment applies to only those cases where a foreigner has enough of an ownership share, defined by BEA [1, 2] at 10 percent or more, to exercise control over decisions Foreign Direct Investment (FDIUS) refers to the narrow sense while Portfolio Investment is included in the broader sense
The purchase of assets of an individual or firm in one country by individuals or firms in another It includes both Direct Investment and Portfolio Investment