Foreign Direct Investment (FDI) occurs when a firm invests in productive assets in another country. FDI is a key driver of globalization, enabling multinationals to establish operations abroad and transfer technology and capital.
What Is Foreign Direct Investment? Foreign Direct Investment (FDI) refers to an investment made by a firm or individual in one country into a business or asset in another country, with the intention of establishing lasting influence and control. It is distinguished from portfolio investment (buying shares without control) by the element of managerial influence — typically defined as ownership of 10% or more of voting shares in a foreign enterprise. FDI is one of the most important mechanisms in