Review:
Foreign Direct Investment (fdi)
overall review score: 4.3
⭐⭐⭐⭐⭐
score is between 0 and 5
Foreign Direct Investment (FDI) refers to an investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.
Key Features
- Investment from one country into another
- Long-term relationship between investor and recipient
- Transfer of technology and expertise
- Creation of jobs and economic growth
Pros
- Promotes economic development in host countries
- Creates job opportunities for the local population
- Encourages technology transfer and knowledge sharing
Cons
- May lead to exploitation of resources in host countries
- Dependency on foreign investors for economic growth
- Risk of capital flight during economic downturns