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Foreign Direct Investment

   Also found in: Dictionary/thesaurus, Acronyms, Wikipedia 0.07 sec.
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
Major investment by a foreign corporation. A common example of FDI is a situation in which a foreign company comes into a country to build or buy a factory. Many economists believe that FDI is good for an economy, as it provides jobs and increases domestic capital. Critics point out that profits from FDI usually leave the country and go to the foreign company. Encouraging FDI is a major part of some IMF restructuring programs.


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In the case of Central America, deeper regional integration would allow the region to attain a critical size in economic terms, offer wider perspectives for operators and become an attractive market for foreign direct investment from the EU.
But the event also highlighted the most overlooked issue when it comes to international trade and competitiveness in Los Angeles: foreign direct investment (FDI).
For the first 35 years of the Republic of Korea's (2) economic development, the government showed a clear preference for foreign capital in the form of loans rather than inward foreign direct investment (IFDI) as a means of financing its development plans.
 
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