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What is direct foreign investment?
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1st Nov 2009 by JP
DFI (Direct Foreign Investment) or FDI (Foreign Direct Investment) are synonymous concepts that describe the general phenomenon of an entity from one country, investing in a second country.
For an investment to be considered FDI, it must be a purchase of physical assets in another country or a significant amount of stock (ownership) of a company in another country to gain a measure of management control.
Historically, the investing entity in question has been a firm, but recently Governments have begun to undertake FDI too, in the form of Sovereign Wealth Funds.
DFI (Direct Foreign Investment) or FDI (Foreign Direct Investment) are synonymous concepts that describe the general phenomenon of an entity from one country, investing in a second country.
For an investment to be considered FDI, it must be a purchase of physical assets in another country or a significant amount of stock (ownership) of a company in another country to gain a measure of management control.
Historically, the investing entity in question has been a firm, but recently Governments have begun to undertake FDI too, in the form of Sovereign Wealth Funds.
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19th Oct 2009 In Business
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Subjects: fdi,
foreign direct investment,