How Is Foreign Investment Applied?

There are 2 types of foreign investments, (i) FDI (Foreign direct investment) and  (ii) FII (Foreign institutional  investment ). FDI is where foreign investors invest directly in the economic infrastructure of any foreign country, means they invest their money to establish some institution, production units or in infrastructural units. This investment contributes directly to the economy of the host country thats why it is a direct investment. And in FII the foreign investors invests in the financial market of any foreign country for the purpose of making profit. These foreign investments help the economy to grow in both the manners.