What is the Foreign Direct Investment (FDI)?

Economic Development Indices Questions



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What is the Foreign Direct Investment (FDI)?

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 aimed at gaining ownership or controlling interest in a foreign enterprise and is typically long-term in nature. It plays a crucial role in economic development as it brings in capital, technology, and expertise, stimulates job creation, enhances productivity, and promotes trade and economic growth.