foreign direct investment

(redirected from Direct Foreign Investments)
Also found in: Dictionary, Thesaurus.

Foreign direct investment (FDI)

The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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%.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
He added that throughout the past eight years, South Africa has lost direct foreign investments in the sector of mining, estimated at $20-$30bn, to countries like Canada and Australia, noting that inefficient administrations cost their countries losing major investment opportunities.
Financial and insurance activity is the third largest contributor to the direct foreign investments in the emirate by 15.4 per cent after the real estate and transformational industries.
The Philippines has been ranked high in the World Economic Forum's 2013-2014 Global Competitiveness Report, Aquino said, adding that major credit rating agencies have also upgraded their ranking of the Philippines for direct foreign investment.
By direct foreign investments in Armenia, France holds the second position after Russia but the first position
Releasing a written statement on Monday, Caglayan said that Turkey continued to be an attraction center for investors despite many problems in the world, adding that direct foreign investments in Turkey increased 74 percent from 9 billion USD in 2010 to 15.7 billion USD in 2011.
Head of Iran's Organization for Investment and Economic and Technical Assistance Behrouz Alishiri said Iran has beaten a historical record in attracting direct foreign investments.
He said that most of the resorts were built by direct foreign investments, however none of these resorts were owned by Pakistanis.
The aim is to convey "the new image of Tunisia" as "a site to host and develop direct foreign investments." The point is also to "reassure" Tunisia's partners and "break with the wait-and-see policy" characterising the attitude of foreign investors after January 14.
Latin American and Caribbean nations accounted for only 10 percent of the direct foreign investments in the region.
Summary: Deputy Managing-Director Murilo Portugal said, on Friday in Tunis, that Tunisia in spite of the world crisis, managed to bring down its public debt and doubtful debts, to increase its currency reserves and the volume of direct foreign investments (DFIs).
The crisis has not spared direct foreign investments worldwide, which recorded a drop of 22% in 2008 and were expected to fall further in 2009.

Full browser ?