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 ?
The share of foreign direct investments from Russia in 2009-2013 varied from 2.
Thus, the foreign direct investment in BulgariaA in January-April 2011 decreased by EUR 441 M year-on-year - EUR 62.
Non-CIS countries were main sources of foreign direct investments, holding 56.
From January until the end of June, some 58 million euros of the foreign direct investments were stockholders' capital and reinvested profit, which is in fact classical investment, while 63 million euros were borrowings among mother companies abroad and daughter companies operating in Macedonia's territory.
Our trade clients rely on us to handle issues such as export and import controls, economic sanctions, anti-bribery rules, foreign direct investment, trade agreement negotiations, and anti-dumping and subsidy cases.
For the period, the volume of foreign direct investments from Russia amounted to $14.
The Central Bank of Egypt is currently auditing indicators for the period since June 2014, with figures to be announced soon and including rates for foreign direct investment and growth.
The Central Bank of Egypt (CBE) pointed out that in the third quarter of 2010/11, foreign direct investment declined at a rate of 90.
This year, AIM will discuss the role of foreign direct investments (FDI) on the Arab and regional economies with a special focus on emerging markets.
According to preliminary data of the Bulgarian National Bank (BNB), the Foreign direct investments in the country for the period January - February 2013 amounted to EUR 40.
He added, "The close review of the international investment map, in the light of current international reports, reveals cautious revival of foreign direct investments, and in spite of the relatively low level of performance last year compared to 2009, it is still generally better than it was before 2008.

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