FDI stands for Foreign Direct Investment. It refers to an investment made by a company or an individual from one country into a business located in another country. In FDI, the investor becomes a stakeholder in the foreign business and is directly involved in the management and operations of the business.
FDI can take many forms, including the establishment of a subsidiary or a branch office in the foreign country, the acquisition of a foreign company, or a joint venture with a foreign partner.
FDI is considered an important driver of economic growth and development, as it can bring in new capital, technology, and expertise to the host country. FDI can also create new jobs and stimulate competition in the local market. Governments often provide incentives and favorable policies to attract FDI to their countries.
