ABSTRACT
The evaluation of foreign investment opportunities is subject to a complicated set of economic, political, legal and strategic considerations. Foreign investment broadly falls into three categories: portfolio investment, direct investment and leasing investment. International portfolio investment is the purchase of foreign securities in order to earn a return in the form of interests, dividends, or capital gains. A foreign leasing investment decision results from a complex process that differs in many aspects from that governing a domestic leasing investment decision. As international economic conditions improve, and taxation policies favouring investments are introduced, leasing is expected to be increasingly realised as a means of investments in equipment and facilities, and will therefore gain its greater expansion in the future. When investment through leasing in foreign countries, the investor may face: international financial risks; political risks; and international regulatory risks associated with changes in tax laws, customs rules, commercial codes, or accounting standards.
