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Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

Business Glossary provided by
FDI involves acquiring a lasting interest or a controlling stake in a business in another country, thus ensuring a degree of direct management control. It's distinguished from foreign portfolio investment by this control aspect. FDI is not only about monetary transactions but also involves transferring technology, knowledge, and skills, and is a key element of economic globalization.
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