The evaluation and analyse of foreign capital investment

It is only possible for developing countries to continue improving their investments, productivity and economic growth by attracting the inflow of foreign savings. To bring the foreign capital to the homeland is possible with foreign capital investments and foreign loans. By globalization, the economy and trade became liberal. By the cause of this, the free circulation of capital was increased, trade became free and it was started to be seen the similarity between consumer behaviours. Some speed developments became between sectors and companies. It was increased the foreign capital investment and the cooperation between the companies from different countries. International capital investments are done as direct investments or portfolio investments. Direct investments can be defined as; for long term, for getting economical benefit and capital investments which is at the level of that, can affect the company management. Fund investments into a developing country can be helpful since it gives immediate relief to macroeconomic indicators however it can also be equally harmful when investors devest and create immediate outflows of funds that negatively effect the capital markets. Entering the foreign capital puts in motion the capital market of a country. For getting more benefit from international capital for the economical development, it is caused doing the structural reforms like privatization. Foreign capital gives great assistance to be come true the structural reforms. 1/3 of the share demand is covered by international investors at the privatization, that is done by developing countries. Foreign capital was not important before globalization process at past. After noticing the benefit of foreign capital to the economical development, it is now so important for the developed and developing countries