Foreign Direct Investment and Portfolio Investment

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A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.

The origin of the investment does not impact the definition, as an FDI: the investment may be made either "inorganically" by buying a company in the target country or "organically" by expanding the operations of an existing business in that country.

Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans". In a narrow sense, foreign direct investment refers just to building new facility, and a lasting management interest (10 percent or more of voting _____ __________ ___ ____ ______ ___________.
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Degree : BACHELOR DEGREE PROGRAMMES
Course Name : Bachelor in Commerce
Course Code : BCOM
Subject Name : Business Environment
Subject Code : ECO 13
Year : 2022 2023