Foreign direct investment refers to the investment made by a company or individual from one country into a business or project located in another country. It involves establishing a lasting interest and control over the invested entity.
Related terms
Host Country: The host country is the nation where foreign direct investment takes place. It receives investments from other countries.
Multinational Corporation (MNC): A multinational corporation is an enterprise that operates in multiple countries, often investing through foreign direct investment.
Capital Inflows: Capital inflows refer to the movement of funds from foreign entities into a country for various purposes, including FDI.