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 the 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 a foreign country's economy
- Establishing business operations
- Acquiring business assets
- Long-term commitment
Pros
- Creates job opportunities in the host country
- Promotes economic growth and development
- Facilitates transfer of technology and knowledge
Cons
- May lead to exploitation of natural resources
- Could result in loss of sovereignty for the host country