Economic Development Indices Questions Medium
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, with the intention of gaining ownership or control over the invested entity. FDI plays a crucial role in economic development as it brings in capital, technology, and expertise, which can stimulate economic growth, create employment opportunities, and enhance productivity in the host country. FDI can be in the form of greenfield investments, where a new business is established, or through mergers and acquisitions of existing companies. The measurement of FDI is typically done by tracking the inflows and outflows of capital between countries.