Review:
Foreign Direct Investment
overall review score: 4.5
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score is between 0 and 5
Foreign direct investment (FDI) refers to an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.
Key Features
- Investment in foreign countries
- Establishing business operations
- Acquiring business assets
Pros
- Stimulates economic growth
- Creates jobs
- Transfers technology and know-how
- Increases international trade
Cons
- Risk of political instability
- May lead to exploitation of natural resources
- Can create dependency on foreign investors