Foreign Direct Investment

Foreign Direct Investment (FDI) refers to an investment made by a company or individual from one country into business interests located in another country. It typically involves acquiring a lasting interest in or control over a foreign company, such as by purchasing a significant share of its equity or establishing new business operations.

FDI plays a crucial role in the global economy by facilitating capital flow, technology transfer, and job creation. It can boost the economic development of the host country while providing the investor with access to new markets, resources, and growth opportunities. Governments often encourage FDI through incentives, as it helps stimulate local industries and improves infrastructure. However, managing FDI also requires proper regulations to protect national interests and ensure sustainable development.