foreign direct investment

Definition

Direct investments in productive assets by a company incorporated in a foreign country, as opposed to investments in shares of local companies by foreign entities. An important feature of an increasingly globalized economic system.

Use this term in a sentence

You may want to make sure that you know what the exchange rate is when you are dealing with a foreign direct investment.

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We had decided to engage in foreign direct investment as a way of diversifying our wealth and investing in ideas we believe in and support.

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Proponents of supporting local economic growth are understandably opposed to sending investment money elsewhere by way of foreign direct investment.

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Foreign Debt FDI