Foreign Direct Investment (FDI)

Foreign Direct Investment (FDI) is an investment made by a company or individual in one country into business interests located in another country. It is a type of cross-border investment, and is often used to expand business operations, increase production capacity, or acquire new technologies. FDI is typically made in the form of capital investments in new or existing business ventures, such as the purchase of shares in a foreign company, the establishment of a joint venture, or the acquisition of a foreign business. FDI is often seen as a way to stimulate economic growth, create jobs, and increase international trade.

History of FDI

The concept of FDI has been around since the early 20th century, when companies began to expand their operations beyond their home countries. In the 1950s, the United States and other countries began to liberalize their foreign investment policies, allowing companies to invest in foreign countries. Since then, FDI has become an important part of the global economy, with countries around the world competing to attract foreign investment. In recent years, the growth of FDI has been driven by the emergence of new markets, the liberalization of trade and investment policies, and the increasing globalization of business.

Comparison of FDI

Summary

Foreign Direct Investment (FDI) is an important part of the global economy, with countries around the world competing to attract foreign investment. FDI is typically made in the form of capital investments in new or existing business ventures, such as the purchase of shares in a foreign company, the establishment of a joint venture, or the acquisition of a foreign business. For more information about FDI, visit the websites of the World Bank, the International Monetary Fund, and the Organization for Economic Co-operation and Development.

See Also

• Portfolio Investment
• Multinational Corporation
• International Trade
• Foreign Exchange
• Balance of Payments
• International Investment
• Globalization
• Export-Import Bank
• International Monetary Fund
• World Bank

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