Foreign ownership refers to the ownership of a portion of a country's assets (businesses, natural resources, property, bonds, equity etc.) by individuals who are not citizens of that country or by companies whose headquarters are not in that country.[1]
Foreign ownership of assets is widespread in a modern, globally integrated economy, at both the corporate and individual levels. An example of the former is when a corporation acquires part, or all, of another company headquartered overseas, or when it purchases property, infrastructure, access rights or other assets in countries abroad.[2] If a multinational corporation acquires at least half of a foreign company, the multinational corporation becomes a holding company, and the company receiving the foreign investment becomes a subsidiary.[3]
At the individual level, foreign ownership occurs whenever a domestic asset is acquired by a foreign individual, such as an Indian businessman buying a house in Hong Kong, or a Russian citizen purchasing United States Treasury bonds.[4]
- ^ Cambridge Business English Dictionary. Cambridge University Press. 28 November 2011. ISBN 978-0521122504.
- ^ Chau, Esther; Wu, Jayce (2013). Economics HL/SL - Study Guide for the IB Diploma. CANA Academy Limited. p. 166. ISBN 978-9881686824.
- ^ "Definition of subsidiary - Oxford Dictionaries (British & World English)". Oxford Dictionaries. Archived from the original on 17 July 2012. Retrieved 23 October 2014.
- ^ Royse, Roger. "Foreign Ownership of U.S. Real Estate". rroyselaw.com. Royse Law Firm. Retrieved 23 October 2014.