Investment theory of international investment, definition and connotation of investment

The principles of investment are as follows:

1. The principle of compound interest - time is money

The so-called compound interest, also known as interest on plus interest, refers to the method of making a new round of investment with interest after a deposit or investment has been returned. The magic of compound interest, that is, the income of each investment can be used as the principal of the next investment, if the longer the term, the higher the yield, then the effect of compound interest will be more obvious.

Many of the world's master investors have taken the principle of compound interest to the extreme. Warren Buffett is one of the most typical.

2. The principle of leverage - the use of financial leverage to bring large returns

The principle of leverage is also known as the "lever balance bar laughing piece". On the basis of the "center of gravity" theory, Archimedes discovered the principle of levers, "When two objects are balanced, their distance from the fulcrum is inversely proportional to their weight." The principle of leverage is also fully applied to investment, mainly to use a small amount of money to obtain a large return.

For example, when we buy a house, we use the principle of leverage. The vast majority of people buy a house and do not pay it off in a lump sum.

3. Inadmissibility - The investment market is changing all the time

The inadmissibility of the investment market refers to the fact that the market is a complex dynamic system, which is difficult to understand and describe due to the complexity of the interaction of its internal factors and the difficulty of many external factors affecting it. However, in the specific investment process, many people's favorite thing to do is to go to **, or let others do **. This is a manifestation of an investor's lack of understanding of the market.

The definition and connotation of investment are as follows:Investment refers to the economic behavior of a specific economic entity that invests a sufficient amount of capital or monetary equivalents in kind into a certain field within a certain period of time in order to obtain income or increase the value of funds in the foreseeable period in the future.

It can be divided into physical investment, capital investment and ** investment. The former is to invest money in the enterprise and obtain certain profits through production and operation activities, and the latter is to purchase the ** and corporate bonds issued by the enterprise with currency, and indirectly participate in the profit distribution of the enterprise. Investment is a form of incubation of innovation and entrepreneurship projects, and it is an economic activity to promote the development of the industrialization complex of the project.

What is investment is as follows:

1. Introduction to the major of investment.

Investment studies how to allocate the limited resources of individuals and institutions to (financial) assets such as **, treasury bonds, real estate, etc., so as to obtain reasonable cash flow and risk rate of return. The core is to obtain the optimal equilibrium solution of personal wealth allocation under the guidance of the utility maximization criterion.

2. The main courses of investment major.

Political Economy, Western Economics, Econometrics, Money and Banking, Public Finance, Accounting, Investment, International Investment, Multinational Corporation Operation and Case Analysis, Public Investment, Venture Capital, Investment Project Evaluation, Investment, Investment Management, Investment Banking, Corporate Investment and Case Analysis, Project Finance, Investment Estimation, Investment Project Management, Real Estate Finance, Family Investment and Financial Management, Investment Management Information System, and Practical Training Course Simulation Investment Operation, etc.

3. Training objectives of investment major.

Cultivation goals. Students are required to have a solid basic theoretical knowledge of investment, have a wide range of professional knowledge, master the basic knowledge and skills of finance, law, and management, and have the basic ability Chinese of qualitative and quantitative analysis, as well as reading and communicating in foreign languages. Familiar with the national investment guidelines, policies and regulations, understand the theoretical frontier and development trends of the discipline at home and abroad, and have the ability to deal with fixed asset investment and financial asset investment; International investment, investment, enterprise investment, macro investment regulation and other aspects of business skills, can be engaged in various enterprises, economic organizations, state agencies, teaching, scientific research institutions and other aspects of the senior specialists.

Knowledge and skills. <>

1) Systematically master the basic theories and basic knowledge of investment, and be familiar with the basic knowledge of management, economics, law and other disciplines closely related to the investment major;

2) Master the combination of social science and natural science, qualitative and quantitative analysis methods, and have the business skills to deal with financial investment, venture capital, international investment, investment, enterprise investment, investment macro-control, etc.;

3) Be able to apply the basic theories and methods of investment to practice, and have strong investment organization and decision-making ability and innovative spirit;

4) Familiar with the national guidelines, policies and regulations related to investment, and understand the theoretical frontiers and development trends of the discipline at home and abroad;

5) Have strong foreign language listening, speaking, reading and writing skills, be able to consult foreign literature proficiently, and have certain foreign language communication skills.

Publisher: 1st edition (June 1, 2005).

Year of publication: 2005-6

Pages: 760

Brief introduction of the content:

In recent years, the rising competitive pressure in the international market has forced enterprises to open up new opportunities for efficiency growth, and international investment has become a hot spot in the international economic field.

This book is the most authoritative and classic textbook written by Professor Bruno Solnik, a well-known scholar in the field of international financial markets.

This book contains many important aspects of international investment research. Part 1 consists of five chapters, introducing the international monetary environment and the theoretical framework of international investment. Part 1 consists of 10 chapters that focus on the concepts and related techniques of the main investment vehicles (**, bonds, and derivatives).

The first two chapters discuss some of the international investment strategies and the process of making international investments.

This book is a special textbook for the CFA exam, and the formulas, calculations, and text descriptions and arrangements in the book are closely related to the requirements of the exam. It is suitable for teachers and students majoring in investment, finance, and banking, researchers in international economic relations, experts in strategic research, professionals in the field of investment, and readers interested in international investment.

International BAI

The concept of direct and indirect investment refers to the long-term investment efficiency of foreign investment

and the direct establishment of enterprises or companies abroad with control over the company and the right to manage the management of the enterprise.

The main contents are as follows:

1) From the perspective of whether the production and operation direction of the subsidiary and the parent company are consistent, it can be divided into three types:

1. Horizontal investment: the same or similar products, generally used in machinery manufacturing and food processing industries.

2. Vertical investment: it can be a product of different programs in the same industry. Mostly seen in the automotive and electronics industries; However, products related to different industries are mostly seen in resource extraction and processing industries.

3. Hybrid investment: the production of completely different products, which is currently adopted by only a few giant multinational companies.

2) From the perspective of whether the investor invests in a new business, it can be divided into:

1. Start a new enterprise: also known as greenfield investment, there are two ways, sole proprietorship and joint venture.

2. There are two forms of control over the equity of foreign enterprises, and foreign investors purchase a certain proportion of the host country's enterprises through certain procedures and channels, so as to pass the right to control.

3) According to the different ways of participation of investors in foreign investment, it can be divided into three forms: joint ventures, cooperative enterprises and sole proprietorships.

The theory of international investment includes the following eightfold theories, which are:

monopoly advantage theory; internalization theory; Product Life Cycle Theory; the theory of international production eclecticism; theory of comparative advantage; Theory of the stages of development of international direct investment; investment-induced factor combination theory; Complementary OFDI theory.

5ewx Title: International Investment.

Publisher: China Business Press.

Year of publication: 2004-10

Pages: 331

Introduction: