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Foreign Direct Investment (FDI)

Definition

Foreign Direct Investment refers to the investment made by a company or individual from one country into another country. It involves the establishment of business operations or acquiring ownership in foreign companies.

Related terms

Multinational Corporation: A multinational corporation is a company that operates in multiple countries, with headquarters usually located in one country.

Balance of Payments: Balance of payments refers to the record of all economic transactions between residents of one country and residents of other countries over a specific period.

Sovereign Wealth Fund: A sovereign wealth fund is a state-owned investment fund that invests globally, typically funded by surplus revenues from natural resources or foreign exchange reserves.

"Foreign Direct Investment (FDI)" appears in:

Subjects (3)

AP Human Geography
AP World History: Modern
Intro to Political Science

Study guides (3)

AP Comparative Government - 5.3 Challenges from Globalization
AP Comparative Government - 5.4 Policies and Economic Liberalization
AP Comparative Government - 5.7 Impact of Industrialization and Economic Development

Practice Questions (3)

Under the government of Vladmir Putin, what has been the impact on foreign direct investment (FDI) in Russia?
What is the definition of Foreign Direct Investment (FDI)?
What does economic liberalization usually lead to in terms of Foreign Direct Investment (FDI)?

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