๐Ÿ“œintro to political science review

Foreign direct investment (FDI)

Written by the Fiveable Content Team โ€ข Last updated September 2025
Written by the Fiveable Content Team โ€ข Last updated September 2025

Definition

Foreign Direct Investment (FDI) is the investment made by a company or individual in one country in business interests located in another country, in the form of either establishing business operations or acquiring business assets in the foreign country, including ownership or controlling interest in a foreign company. It plays a crucial role in global economic growth and development, allowing capital to move across borders for investments in infrastructure, businesses, and technology among others.

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