What does FDI (foreign direct investment) mean?
Foreign direct investment (FDI) is an investment through which a foreign investor seeks to establish a lasting and direct business relationship and presence in another country. FDI generally involves effective participation in the management or control of a business and requires a significant financial and operational commitment.
What are the key characteristics of FDI (foreign direct investment)?
FDI may be undertaken to access new markets and customers, establish production or service capacity, gain access to resources and technology, or improve supply chain efficiency. Foreign direct investment is therefore typically made with a longer-term perspective.
FDI can take the form of a new greenfield investment, a brownfield investment involving the acquisition of an existing business or assets, or the expansion of capacity at an existing site. In all three cases, investors need to coordinate complex decisions concerning location, financing, incentives, permitting, taxation and project implementation.
