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Foreign Direct Investment

Foreign Direct Investment Definition

Foreign Direct Investment (FDI) is a cross-border investment made by an investor with a view to establishing a lasting financial interest in an enterprise and exerting a degree of influence on that enterprise's operations and where the foreign investor holds an interest of at least 10% in equity capital.

FDI is often mentioned as a lead driver for economic growth and thought to bring certain benefits to national economies. It can contribute to Gross Domestic Product (GDP), Gross Fixed Capital Formation (total investment in a host economy) and balance of payments.








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