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The other day, I heard about FDI which stands for Foreign Direct Investment. And ever since I've been wondering about what is it all about, and how can I key into some of its advantages? 

8 Answers

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There are two kinds of foreign investment in an economy, FPI-foreign portfolio investment, in which foreign companies or persons invest their money in the share markets or shares of any company. The other type of investment is FDI, that is where a foreign company or national invest their capital directly for production or services. This comprises buying assets and running business in that country.

Basically FDI is very important for a country's economic growth, which brings foreign money into the economy, providing job opportunities, satisfying local market in low prices for a specific good. These things happens in less magnitude in FPI.

Every government is favoured towards FDI because, there is less chances of riverting back your capital if any turmoil happens in the country's economy than FPI.
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Thanks. I really gained a lot from your salient explanation. FDI has so many advantages over FPI. 
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A foreign direct investment(FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country, It is thus distinguished from a foreign portfolio investment by a notion of direct control. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans". FDI is the sum of equity capital, long-term capital, and short-term capital as shown in the balance of payments. FDI usually involves participation in management, joint-venture, transfer of technology and expertise. Stock of FDI is the net(i.e., outward FDI minus inward FDI) cumulative FDI for any given period. Direct investment excludes investment through purchase of shares(if that purchase results in an investor controlling less than 10% of the shares of the company).
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Foreign Direct Investment (FDI) is an investment by a foreign entity into...............................................................
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FDI, or foreign direct investment, occurs when a company or individual invests in and controls a business in a foreign country. This can be done through mergers and acquisitions, establishing a new subsidiary, or investing in an existing foreign business. FDI can bring benefits like job creation, access to new markets, and technology transfer, but it can also pose risks like loss of control, cultural barriers, and political instability. Governments often offer incentives to attract FDI.
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FDI is the transfer of business, products, and services from a foreign company to the United States. The purpose of FDI is to promote American business and to encourage foreign investors to invest in the United States. FDI can be used to help promote American business, to help encourage foreign investors to invest in the United States, or to just pay attention to the United States.
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It works in achieving purchasing the stock or bond of a foreign company.FDI requires a substantial and direct investment in or the outright acquisition of a company based in another and not just their securities
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involves an investor or company buying a significant, lasting interest in a company in another country. In a green-field investment, a parent company creates a new operation in a foreign country from the ground up
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the FDI involves an investor or company buying a significant, lasting interest in a company in another country. In a green-field investment, a parent company creates a new operation in a foreign country from the ground up.
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