FDI Full Form | What Does FDI Stand For?

FDI: Foreign Direct Investment

FDI Full Form

FDI full form stands for Foreign Direct Investment. Foreign direct investment (FDI) is an investment in one country as controlled ownership of the business of an entity located in another country.

The actual definition of investment as FDI is not affected: the investment is made “unnecessarily” by buying a company in the target country or expanding the existing business process in that country.

Brief Explanation

A subset of the movement of the international element is characteristic of FDI full form (Foreign Direct Investment) to control the ownership of businesses in one country by an institution located in another country. Foreign direct investment (FDI) varies from passive investment in a foreign portfolio, through a “controlling” element, to another country’s securities such as public stocks and bonds.

According to the Financial Times, “Standard definitions use a threshold of 10% international consensus shares of control, but this is a gray area because it often controls a small portion of shares in large companies. In addition, technology, Management control, even. Critical input can give control of reality. “

Types of FDI

  • Horizontal FDI arises when a firm mimics activities related to its country in the same value chain stage in a host country.
  • FDI platform aimed at exporting to third-country Direct foreign direct investment from a source country.
  • Vertical FDI occurs when a firm moves up or down in different value chains through FDI, that is when the firm performs phased value-adding activities in a host country.

Methods Of FDI

  • Participate in an equity joint venture with another investor or venture
  • By acquiring shares in the concerned enterprise
  • Through merger or acquisition of unaffiliated enterprise
  • Including wholly owned subsidiary company or company at any location

What Is The Full Form Of FDI?

FDI full form stands for Foreign Direct Investment. It is an investment in one country as controlled ownership of the business of an entity located in another country. It varies from passive investment in a foreign portfolio, through a “controlling” element, to another country’s securities such as public stocks and bonds.

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