FDI

Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country.

Generally, the term is used to describe a business decision to acquire a substantial stake in a foreign business or to buy it outright to expand operations to a new region. The term is usually not used to describe a stock investment in a foreign company alone. FDI is a key element in international economic integration because it creates stable and long-lasting links between economies.
Features:

• Foreign direct investments (FDIs) are substantial, lasting investments made by a company or government into a foreign concern.
• FDI investors typically take controlling positions in domestic firms or joint ventures and are actively involved in their management.
• The investment may involve acquiring a source of materials, expanding a company’s footprint, or developing a multinational presence.
• The top recipients of FDI over the past several years have been the United States and China.
• The U.S. and other Organisation for Economic Co-operation and Development (OECD) countries have been the top contributors to FDI beyond their borders.