What is the full form of FDI?
FDI full form is Foreign Direct Investment. It is the investment made by a company established in one country into a company based in another country. It differs from the movement of a global investor’s portfolio of equities listed on a nation’s stock exchange. As the investor aims to exert influence or control over such a corporation of a nation, this type of investment is known as direct investment. Foreign direct investment is often made at relatively low costs in nations with open economies, great development potential, and skilled labor.
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Benefits of FDI
A few of the most important are given here.
- It generates employment in the nation.
- It provides the nation with new capital
- Enhances the nation’s international role
- It introduces new talents and technology to a nation.
- It has enhanced prosperity and tax revenues.
- It gives the investor corporation access to a country’s international market. When salaries are lower in the international target market, the investor organization may be able to reduce production costs.
- The investor corporation may utilize a nation’s natural resources, such as metals, fossil fuels, etc.
