Foreign Direct Investment

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From Wikipedia, the free encyclopedia
Foreign direct enthronement funds (FDI) is direct investiture into production or business in a country by a company in an another(prenominal) country, either by buying a company in the target country or by expanding operations of an existing business in that country. . Foreign direct coronation is in contrast to portfolio enthronisation which is a passive investment in the securities of another country such as stocks and bonds.
As a part of the national accounts of a country, and in esteem to the national income equation Y=C+I+G+(X-M), I is investment plus foreign investment, FDI refers to the net inflows of investment(inflow minus outflow) to acquire a lasting management interest (10 percentage or more of voting stock) in an enterprise direct in an economy other than that of the investor.[1] It is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. It ordinarily involves participation in management, joint-venture, transfer of technology and expertise. There atomic number 18 two types of FDI: inward and outward, resulting in a net FDI inflow (positive or negative) and stock of foreign direct investment, which is the accumulative number for a given period. Direct investment excludes investment through purchase of shares.[2] FDI is one example of international component part movements.




Contents  [hide]  * 1 Importance and barriers to FDI * 1.1 Foreign direct investment and the developing world * 1.2 Difficulties limiting FDI * 2 Types * 3 Methods * 4 Country attractiveness * 5 Foreign direct investment by country * 5.1 Global overview of foreign direct investment * 5.2 Foreign direct investment in the United States * 5.3 Foreign direct investment in China * 5.4 Foreign direct investment in India * 5.4.1 2012 FDI reforms * 6 See also * 7 References * 8 External links|...If you want to get a full essay, order it on our website: Ordercustompaper.com



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