Foreign direct investment
Definition
Foreign direct investment (FDI) occurs when an individual or company from one country invests directly in businesses located in another country.
Related terms
Multinational corporations: These are companies that operate in multiple countries and have business activities in various locations around the world.
Host country: The host country is the nation where foreign direct investment takes place, receiving investments from individuals or companies based in other countries.
Capital inflow: Capital inflow refers to the movement of money into a country for investment purposes, including foreign direct investment.
"Foreign direct investment" appears in:
Subjects (2)
AP Human Geography
Intro to Political Science
Study guides (1)
AP Comparative Government - 5.2 Political Responses to Global Market Forces
Practice Questions (2)
Why does the Iranian government limit Foreign Direct Investment from Western nations?
How do Foreign Direct Investment and MNCs affect a nation's economic and political ideas?
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About Us
About Fiveable
Blog
Careers
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.