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 ?
They also need to implement plans for more foreign direct investment.
However, foreign direct investment in Japanese nonmanufacturers rose 19.5 percent to 1,628.9 billion yen, bolstered by a 136.7 percent climb in the real estate industry and a 57.4 percent increase in the financial and insurance sector.
In the first quarter of 2019, for instance, the net inflow of foreign direct investments reached $1.9 billion, down 15.1 percent from the $2.3 billion in the same period last year.
Likewise, foreign direct investments in services stood at 626.1 MD in 2018 against 321.3 MD in 2017.
Likewise, foreign direct investments in services stood at 626.1 MTD in 2018 against 321.3 MTD in 2017.
some of the benefits of allowing foreign direct investment in real estate;
(19) of 2018 aims to consolidate the country's position as a major attraction for foreign direct investment at the regional and global levels, attract and encourage foreign investment.
The decree aims to promote and develop the country's investment environment, and attract foreign direct investment in line with national development policies.
Foreign direct investment could be encouraged and the making of thousand new opportunity jobs, improve technology transfer, and increase whole growth rate in the most developing nations.
The realization of investment in the second quarter of 2018 at the amount of Rp176.3 trillion consists of foreign direct investment (PMA) Rp95.7 trillion and domestic investment (PMDN) Rp80.6 trillion.
Jessica Combes Foreign Direct Investment (FDI) in the Sultanate rose to OMR9.34 billion in 2017 Foreign Direct Investment (FDI) in the Sultanate rose by 15 per cent, to OMR9.34 billion in 2017, from OMR8.09 billion in the fourth quarter in 2016.
Muscat, June 23 (ONA) Foreign Direct Investment (FDI) in the Sultanate rose by 15 per cent to RO9,339.5 million in 2017, from RO8,096.7 million for the 4th Quarter in the previous year.

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