Foreign investments involve moving money or resources from one country to another to start or buy a business there. This can be done by governments or private individuals. There are two types of foreign investments: direct, where the investor has control over the business, and portfolio, where they don't have much say. Direct investment can be starting a new business or buying an existing one. Portfolio investment includes things like buying stocks or bonds. The main difference between foreign investment and foreign trade is that the money is used to run a business in the host country, rather than just buying and selling goods.