Economics World Bank 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 physical presence, such as a subsidiary or branch, in the foreign country. FDI is characterized by the investor having a significant degree of control and influence over the operations of the foreign business entity. It is a long-term investment that aims to gain access to new markets, resources, technology, or to benefit from lower production costs. FDI plays a crucial role in promoting economic growth, job creation, and technology transfer in both the host and home countries.