The Foreign Direct Investment (also known as “FDI”) is the policy of countries doing business in other countries. The FDI is always recorded on a yearly basis by the National Foreign Exchange. The normal way that FDI works is when a business in one country has control and ownership of a company in another country.
Here are few ways how the concept of Foreign Direct Investment works:
Here are the different types of FDI that can occur:
Here are the different types of Foreign Direct Investment programs that can be set-up:
Many countries have come to realize the importance of doing business in other countries to grow their foreign economy and their home economy. Most of the FDI occurs in the following “Developed” Countries:
But, many “Developing” Countries are starting to play a major role in the world economy. Here are some of the major “Developing” countries making their mark in the world economy:
The main areas where FDI is becoming very popular is in the following areas of business:
Many countries have no issue with outsourcing certain services to different countries. Companies in the USA normally will outsource their customer service to countries like India and Indonesia. Many automobile manufacturers in Asian countries like to have their vehicles made in USA factories. Many countries like China and Russia buy their oil from countries like Iran and Saudi Arabia. The Foreign Direct Investment will not be a major issue for foreign corporations to do business with Poland concerning the manufacturing of renewable resources. FDI allows “Developing” Countries to become major players in the world economy.