Economics Economic Indicators Questions
Foreign direct investment (FDI) refers to the investment made by a company or individual from one country into another country. It involves the establishment of a business operation or the acquisition of assets in the foreign country. FDI is used as an economic indicator to measure the level of investment inflows into a country, which can provide insights into the attractiveness of the country's business environment and its economic growth prospects. FDI is often seen as a positive indicator as it can contribute to job creation, technology transfer, and overall economic development. Additionally, FDI can also indicate the level of confidence that foreign investors have in a country's political stability, legal framework, and potential returns on investment.