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What is FDI (Foreign Direct Investment)
Foreign direct investment (FDI) is the term for a direct investment in a particular company or a busines invested by an investor from another country.

Foreign direct investment (FDI) is a term for a direct investment in a company or a business from another country. Foreign direct investments are investments made by a particular investor in a particular company - unlike portfolio investment in financial markets.

Foreign direct investments in practice: Investments designated as FDI must be at least 10% stake in the company (purchase of shares, or other business interest). The investor typically receives significant decision-making power in the company, where he invests.

In terms of the system of national accounts FDI is part of the statistics of balance of payments, specifically its financial account.

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Last update: 09.09.2015

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