Foreign Direct Investment (FDI)
economy
Definition
Foreign Direct Investment (FDI) involves an individual or entity from one country making a long-term investment in a business located in another country. Unlike portfolio investments, FDI entails significant control of the business operations in the foreign market. It often leads to significant local economic benefits, including job creation and expertise transfer, while offering investors access to new markets and resources. FDIs are crucial for economic globalization, fostering global economic integration.