It may involve setting up operations or acquiring a lasting ownership stake. It differs from a simple portfolio investment.
Foreign direct investment (FDI)
In a nutshell
FDI is cross-border investment that gives an investor control or significant influence over a business.
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Explained simply
A practical example
Hypothetical example: a Moroccan company establishes and controls a processing plant in Senegal; this operation is FDI.
Further reading
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What this means
A company establishing and controlling a factory abroad makes a foreign direct investment.
Educational scenarios. Amounts and rates are fictional, not current market conditions.