The terms Onward Industry and Inward Industry are not standard, widely-used business or economic terms. However, based on common terminology in international economics, specifically Foreign Direct Investment (FDI), they are most likely referring to Outward Investment and Inward Investment.
"Inward Industry" corresponds to Inward Investment.
"Onward Industry" corresponds to Outward Investment (or Outward FDI).
The terms refer to the direction of capital flow across a country’s borders for the purpose of establishing a lasting business interest.
A. Inward Industry (Inward Investment / Inward FDI)
Inward Investment (or Inward Foreign Direct Investment – FDI) refers to foreign investment coming into a country or domestic economy.
| Aspect | Description |
| Flow Direction | Money, capital, and resources flow into the domestic economy from a foreign entity. |
| Perspective | The perspective of the Host Country (the country receiving the investment). |
| Examples | A Japanese car company builds a factory in the United States, or a German firm acquires a controlling interest in a UK tech company. |
| Economic Impact | Generally positive for the host country, as it brings in foreign capital, creates jobs, introduces new technology and expertise, and can increase competition and productivity. |
Export to Sheets
B. Onward Industry (Outward Investment / Outward FDI)
Outward Investment (or Outward Foreign Direct Investment – FDI) refers to investments made by a country’s domestic companies into foreign economies.
| Aspect | Description |
| Flow Direction | Money, capital, and resources flow out of the domestic (home) country to a foreign economy. |
| Perspective | The perspective of the Home Country (the country making the investment). |
| Examples | An American company purchases a factory in Vietnam, or a Chinese conglomerate establishes a new office in Brazil. |
| Economic Impact | The effects are debated: it can expand the home company’s market access, increase their profitability, and bring back foreign profits. However, critics sometimes argue it leads to domestic job loss (outsourcing). |
Core Concept: Foreign Direct Investment (FDI)
Both “Inward” and “Outward” investment are two sides of the same coin: Foreign Direct Investment (FDI). FDI is an investment in a business in one country by a company or investor from another country with the intent to establish a lasting interest or significant influence over the business.
The difference between a country’s Inward FDI and its Outward FDI is called the net FDI inflow.