Foreign Direct Investment (FDI)

Definition

Foreign Direct Investment refers to the investment made by a company or individual from one country into another country. It involves the establishment of business operations or acquiring ownership in foreign companies.

Related terms

Multinational Corporation: A multinational corporation is a company that operates in multiple countries, with headquarters usually located in one country.

Balance of Payments: Balance of payments refers to the record of all economic transactions between residents of one country and residents of other countries over a specific period.

Sovereign Wealth Fund: A sovereign wealth fund is a state-owned investment fund that invests globally, typically funded by surplus revenues from natural resources or foreign exchange reserves.