Why Investing Is A Resource Rich Or Low Interest Rates And Why Australian Investors Choose Foreign Investments?

1483 Words6 Pages
1.0 Introduction: Investing plays a huge role in any country, business or individual’s life. Investing is the action or process of purchasing an asset in hope that it will generate income and ultimately appreciate within the future. They can be goods that are not used right away, but held onto and used in the future in order to create wealth, or a monetary asset that will provide income in the future and will be sold at a higher price for a profit. Recently, many Australian based multinational corporations (MNC) have increased their investments in foreign securities. This essay will bring light onto why these corporations do this, how their investing plans can be affected by a strong dollar or low interest rates and why Australian investors choose foreign investments. Furthermore, this essay will conclude the topic and bring forward arguments in favor, or against the actions of investing in foreign securities. 2.0 Body: 2.1 Pros and cons of foreign investing: There are many advantages in foreign investing in today’s society. Australia is a resource-rich and has a highly skilled workforce who love an international reputation for innovation (Department of Foreign Affairs and Trade, 2016). To get the most out of these advantages, Australia needs international capital to increase domestic savings. Therefore, foreign investment will be a major contributing factor in order to help Australia grasp its economic potential. This works by providing capital to fund new industries and

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