Answer :
When a company directly invests in new facilities to produce and/or market in another country, this is known as foreign direct investment (FDI).
What exactly is an FDI (foreign direct investment)?
A stake in a foreign company or project owned by a foreign investor, company, or government is known as foreign direct investment (FDI).
The decision to acquire a substantial stake in a foreign company or to buy it outright to expand operations to a new region is typically referred to by this term. Typically, the term is not used to refer only to stock investments in foreign companies. Because it establishes connections between economies that are both stable and enduring, foreign direct investment (FDI) is an essential component of international economic integration.
What is FDI, and what are its benefits and drawbacks?
Foreign direct investment boosts a nation's economy. Foreign direct investment (FDI) may impede domestic investment. By providing a subsistence workforce, FDI contributes to the expansion of human capital. Negative values can occasionally occur as a result of investments. Trades on the global market are made easier by FDI, which enables an increase in exports.
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