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Foreign Direct Investment

Ceramic Products
From Pakistan
To India
354 views / 0 experts
Nov 23, 2022

How does foreign direct investment work?

1 answer

Nov 23, 2022

Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country. Companies or governments considering a  FDI generally consider target firms or projects in open economies that offer a skilled workforce and above-average growth prospects for the investor. Light government regulation also tends to be prized. FDI frequently goes beyond mere capital investment. It may include the provision of management, technology, and equipment as well. A key feature of foreign direct investment is that it establishes effective control of the foreign business or at least substantial influence over its decision making.

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