Foreign Direct Investment (FDI) represents an investment by a company or individual from one nation into business interests in another. Crucial for global...
FDI is an investment made by a firm or individual in one country into a business interest in another country, establishing a lasting interest or controlling stake, unlike passive portfolio investments.
The main types of FDI include greenfield investments (establishing entirely new facilities) and brownfield investments (acquiring or merging with existing foreign companies).
Host countries benefit from FDI through increased capital inflow, technology transfer, job creation, skill development, improved infrastructure, and enhanced access to global markets and expertise.
Potential drawbacks include increased competition for local businesses, profit repatriation, environmental concerns, loss of domestic control in certain sectors, and potential economic instability if investments are volatile.