What do you mean by Foreign Direct Investment? Briefly explain the adv

Question

What do you mean by Foreign Direct Investment? Briefly explain the advantages of 10 Foreign Direct investment.

19 Apr 2025

Answer :

Word Count : 668

Foreign Direct Investment (FDI) refers to an investment made by a firm or individual from one country into business interests located in another country. It typically involves acquiring a substantial ownership stake in a foreign company, either through the purchase of existing assets or the establishment of new ventures like subsidiaries or joint ventures. FDI differs from portfolio investment in that it entails a long-term interest in the management and operations of the foreign business, rather than simply buying stocks or bonds for financial gain.

FDI plays a significant role in the context of globalization as it facilitates the flow of capital, technology, and managerial expertise across borders, influencing both the investing and receiving countries. The advantages of FDI are numerous and can substantially impact the economies of both the home country (the _____ _______ _________ _________ ______ _____ ____ _________ ________ _________ ____ ____.
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