Acquisition or construction of physical capital by a firm from one ( source) country in another ( host) country.
External finance invested in companies in a host country.
The acquisition by residents of a country of real assets abroad. This may be done by remitting money abroad to be spent on acquiring land, constructing buildings, mines, or machinery, or buying existing foreign business. Inward foreign direct investment similarly is acquisition by non-residents of real assets within a country. Once a country has real assets abroad, if these make profits which are ploughed back into expanding enterprises, this would ideally be shown in the balance of payments as receipts on current account balanced by an outflow on capital account. In fact balance-of-payments accounts often show only net remittances of profits as a current account item, ignoring profits earned abroad and ploughed back in both current and capital accounts.
An investment is considered direct when the investor's share of ownership is sufficient to allow control of the company. It is also know as the investment for the purpose of establishing lasting economic relations.
Investments of a company incorporated outside India either through a branch or a representative office or through a subsidiary company set up in India for the purpose of performing operations here.
(FDI): is money invested in production by a foreigner rewarded with part-ownership (stocks) of production. For example, a foreign corporation may finance a factory in return for stock certificates, giving a share of the profits from production and some voting rights in the enterprise management. The World Bank defines FDI as ‘net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor’.
The primary measure of cross-border investment of transnational corporations. FDI involves giving managerial controlling power to the foreign investor (in a joint venture, for example).
Foreign Direct Investment is often mentioned as a lead driver for economic growth and thought to bring certain benefits to national economies. It can contribute to Gross Domestic Product (GDP), Gross Fixed Capital Formation (total investment in a host economy) and balance of payments. See also GDP
Global business strategy in which a service organization chooses to invest its resources directly in another country.
the purchase of a physical operating unit or more than 10 percent investment in a foreign country
An investment in a country involving a long-term relationship and con- trol of an enterprise by non-residents. It is the sum of equity capital, reinvestment of earnings, other long-term capital and short-term capital as shown in the balance of payments.
investing in United States businesses by foreign citizens (often involves stock ownership of the business)
a joint venture between a foreign company and a United States company
A category of long-term investment by foreign companies in a nation's economy.
Capital invested for the purpose of acquiring a long term interest in an enterprise and of exerting a degree of influence on that enterprise's operations.
investment made by a foreign individual or company in productive capacity of another country ñ for example, the purchase or construction of a factory.
Ownership or control of 10% or more of the voting securities (or equivalent) of a business located outside the home country.
Investment of money by foreign companies in domestic business enterprises.
Purchase or creation of business assets such as factories, stores, warehouses, and other tangible facilities by a foreign firm, as contrasted with portfolio investment.
Foreign investment that establishes a lasting interest in or effective management control over an enterprise. Foreign direct investment can include buying shares of an enterprise in another country, reinvesting earnings of a foreign- owned enterprise in the country where it is located, and parent firms extending loans to their foreign affiliates. International Monetary Fund (IMF) guidelines consider an investment to be a foreign direct investment if it accounts for at least 10 percent of the foreign firm's voting stock of shares. However, many countries set a higher threshold because 10 percent is often not enough to establish effective management control of a company or demonstrate an investor's lasting interest.
international capital flows in which a firm in one country creates or expands a subsidiary in another. An example is when a multinational company, such as Coke, sets up a bottling plant (also known as a subsidiary) in a foreign country. Setting up this new plant involves not only a transfer of resources but also the acquisition of control. That is, the subsidiary does not simply have a financial obligation to the parent company; it is part of the same organizational structure.
the purchase of land, equipment or buildings or the construction of new equipment or buildings by a foreign company. FDI also refers to the purchase of a controlling interest in existing operations and businesses (known as mergers and acquisitions). Multinational firms seeking to tap natural resources, access lucrative or emerging markets, and keep production costs down by accessing low-wage labour pools in developing countries are FDI investors. Classic examples of FDI include American banks taking over Korean ones or Canadian mining companies building mines in Brazil. (see also portfolio investment)
The funds committed to a foreign enterprise. The investor may gain partial or total control of the enterprise.
The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation.
A long term commitment to marketing in a foreign nation through direct ownership of a foreign subsidiary or division. p. 96
(FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. Firms that use FDI are known as multinational enterprises. Production in the foreign country is largely financed by the multinational. Profits accrue to the multinational through sales made by the foreign affiliate.
The movements of funds between countries for the purpose of purchasing companies, firms or a substantial proportion of shares in a company (10%). Considered to be a longer term investment and the investor normally intends to play a role in the management of the business
See on: Wikipedia Investopedia An investment abroad, usually where the company being invested in is controlled by the foreign corporation.
FDI is investment that is attracted from abroad. It can mean either Greenfield investment (i.e. investment in building new facilities on hitherto undeveloped sites) or portfolio investment (i.e. buying into an established business). Inward investment can take similar forms (either Greenfield or portfolio). However it could include investment from within your country as well as from abroad.
Foreign direct investment (FDI) is defined as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. The FDI relationship, consists of a parent enterprise and a foreign affiliate which together form a transnational corporation (TNC). In order to qualify as FDI the investment must afford the parent enterprise control over its foreign affiliate.