economy : What does a country get when it invests in an another country? What is Japan getting when it invests 30 billion in India?
Answer by Balaji Viswanathan:
What do I get for investing in Google stock? Profits [hopefully]. Every investor hopes to get returns for his/her investment. If there are ventures that can make profits, there is enough money to get into it. In fact, when Google went for their IPO, investors practically begged the company to take their money.
Japanese companies don't have a lot of room to invest home. Interest rates are almost zero and efficiencies are very high. There are not a lot of low hanging fruits for the entrepreneurs squeeze profit from. Consumer spending is relatively low. They need to find ventures to multiply their idle money. India is an ideal place for it, if we can offer the right opportunities.
Remember, every sustainable trade has both sides eyeing the profit.