Foreign Direct Investment (FDI) refers to an investment made by an entity (typically a company or individual) based in one country (home state) into business interests located in another country (host state). FDI commonly involves acquiring a lasting interest in a foreign business, such as by establishing operations, acquiring assets, or owning shares that confer significant control. FDI is defined by the International Monetary Fund (IMF) and the OECD as an investment where the foreign investor acquires at least 10% of the voting power in an enterprise abroad, indicating a long-term interest and significant degree of influence or control.
Foreign direct investment (FDI) is the process by which individuals or entities in one country (the home country) acquire ownership of assets to control the production, distribution and other activities of a company in another country (the host country). Therefore, it is an investment intended to secure a lasting interest in a company in another economy, whereby the investor seeks to exert significant, long-term influence over the company's management.
UNCTAD (2023). World Investment Report 2023: Investment in Sustainable Energy for All.