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Foreign Direct Investment (FDI) refers to the investment made by an individual or a company from one country into business interests located in another country. It involves acquiring a lasting interest and a significant degree of influence over the management of an enterprise operating outside the investor's economy. Typically, FDI is characterized by ownership of at least 10% of the voting stock or ordinary shares of a foreign enterprise. Unlike portfolio investment, which is passive in nature, FDI signifies active management and control in the foreign company. FDI can take several forms, such as establishing a wholly owned subsidiary, acquiring a stake in an existing foreign enterprise, forming joint ventures, or reinvesting profits earned from overseas operations. FDI plays a crucial role in global economic integration as it facilitates capital flow across borders, transfers technology, creates employment, and promotes economic development. For developing nations, FDI acts as a significant source of external finance and contributes to improving infrastructure, industrial growth, and overall competitiveness. In the context of labour laws, FDI has implications on employment generation, working conditions, industrial relations, and the enforcement of labour rights in the host country. However, the decision to undertake FDI is influenced by several motivating factors, and the process of analyzing foreign investments involves addressing multiple issues. Factors Motivating FDI are diverse and can be broadly classified into market-seeking, resource-seeking, efficiency-seeking, and strategic asset-seeking motives. Market-seeking FDI occurs when a company _____ ________ ______ _________ _______ _______ ___ __________ ___.
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