Foreign direct investment
Money that is invested in companies, property, or other assets by people or organizations from other countries:
It's a country that's keen to attract foreign direct investment. (Cambridge Dictionary).
(FDI), investment in an enterprise that is resident in a country other than that of the foreign direct investor. A long-term relationship is taken to be the crucial feature of FDI. Thus, the investment is made to acquire lasting interest and control of the economic entity, with an implied influence on the management of the enterprise. Some degree of equity ownership is usually considered to be associated with an effective voice. Basic forms of FDI are investment made to develop a production or manufacturing plant from the ground up (“greenfield investments”), mergers and acquisitions, and joint ventures. Three components of FDI are usually identified: equity capital, reinvested earnings, and intracompany loans. Other than having an equity stake in an enterprise, foreign investors may acquire a substantial influence in many other ways. Those include subcontracting, management contracts, franchising, leasing, licensing, and production sharing. (Drahokoupil, n.d.).
Foreign direct investment. (2024). Cambridge Dictionary. Retrieved from https://dictionary.cambridge.org/dictionary/english/foreign-direct-investment
Drahokoupil, J. (n.d.). Foreign direct investment (FDI). Retrieved January 26, 2024, from https://www.britannica.com/money/foreign-direct-investment