foreign direct investment

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Foreign direct investment (FDI)

The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation.

Foreign Direct Investment

A major investment by a foreign corporation. A common example of foreign direct investment is a situation in which a foreign company comes into a country to build or buy a factory. Many economists believe that foreign direct investment is good for an economy, as it provides jobs and increases domestic capital. Critics point out that profits from foreign direct investment usually leave the country and go to the foreign company. Encouraging foreign direct investment is a major part of some IMF restructuring programs.

foreign direct investment (FDI)

investment by a MULTINATIONAL ENTERPRISE in establishing production, distribution or marketing facilities abroad. Sometimes foreign direct investment takes the form of GREENFIELD INVESTMENT with new factories, warehouses or offices being constructed overseas and new staff recruited. Alternatively, foreign direct investment can take the form of TAKEOVERS and MERGERS with other companies located abroad. Foreign direct investment differs from overseas portfolio investment by financial institutions which generally involves the purchase of small shareholdings in a large number of foreign companies.

FDI is used alongside STRATEGIC ALLIANCES and EXPORTING as an integral part of a multinational enterprise's FOREIGN MARKET SERVICING STRATEGY.

In 2003/2004, the USA was the world's leading outward (overseas) investor accounting for 15.5% of world outward FDI flows, followed by Belgium 13.3%, France 12.8%, the UK 12.7% and the Netherlands 5.8%. The USA was the leading recipient of inward FDI accounting for 17.3% of inward investment in 2003/2004, followed by Belgium 14.4%, Germany 9.7%, China 7.8% and the UK 7.1%.

foreign direct investment (FDI)

investment by a MULTINATIONAL COMPANY in establishing production, distribution or marketing facilities abroad. Sometimes foreign direct investment takes the form of GREENFIELD INVESTMENT, with new factories, warehouses or offices being constructed overseas and new staff recruited. Alternatively, foreign direct investment can take the form of TAKEOVERS and MERGERS with other companies located abroad.

Foreign direct investment differs from overseas portfolio investment by financial institutions, which generally involves the purchase of small shareholdings in a large number of foreign companies. See FOREIGN INVESTMENT for further discussion. See HOST COUNTRY, SOURCE COUNTRY, INVEST UK.

References in periodicals archive ?
As part of its mandate to bring communities together, the DFI will support two diverse events that engage and entertain.
Detica DFI will combine Detica's existing US security business with DFI and serve as a core component in the company's growing US operations, which include offices in Washington DC, Columbia, Md.
DFI authors address the strategic priorities for the Department of Defense (DOD) as outlined in the QDR report, implications of the QDR for DOD processes and institutional reform, and the potential impact of post-QDR budget developments on the defense sector.
The latest issue of DFI Quarterly is an example of the excellent work that DFI Corporate Services provides our clients throughout the logistics arena," said Steve Irwin, President of DFI Corporate Services.
He is a key addition to the team, demonstrating the expanding ability of DFI Corporate Services to provide a more diverse range of services to our clients," said Steve Irwin, President of DFI Corporate Services.
Immediately following the closure, the DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of 1st Pacific Bank of California.
Grant's experience, reputation, and talent join our team, but to be able to build upon the efforts currently undertaken by IRIS through the integration of that organization into DFI Government Services," said General Dennis J.
Measurements of DFI and BW are typically longitudinal along the growth trajectory of pigs.
The Pentagon managed the DFI funds until the end of 2007, when its authority was withdrawn.
Iraq may need the council to extend the DFI (immunity) beyond December
Under the new umbrella organisation, DFI provides funding for film production, year-round education programmes, and celebrates existing cultural partnerships with Martin Scorsese's World Cinema Foundation, Mira Nair's Maisha, and New York's Tribeca Enterprises.
At Sydney IVF, sperm DNA damage is defined as less than 15 percent DFI for excellent quality sperm, 15-24 percent DFI for good, 25-29 percent DFI for fair and more than 29 percent DFI for poor quality; but other laboratories can have slightly different ranges.