Japanese Law and Government
Foreign direct investment (FDI) refers to the investment made by a company or individual in one country in business interests in another country, typically through establishing business operations or acquiring assets. This form of investment is significant because it often entails a long-term interest in and significant control over the foreign entity, thereby enhancing economic ties between the countries involved. FDI is a crucial component of international economic relationships and influences trade agreements by determining how countries interact in terms of market access, capital flows, and regulatory frameworks.
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