The term Foreign Direct Investment (FDI) refers to the direct investment in activities that control and manage value-added activities in other countries. This is in contrast to Foreign Portfolio Investment (FPI), which refers to holding securities, such as stocks and bonds, of companies in countries outside one’s own but does not entail the active management of foreign assets. Essentially, FPI is foreign indirect investment. An MNE, by definition, is a firm that engages in FDI when doing business abroad.
Historically, the development of many countries such as Australia, Canada, India, and the United States benefited from FDI outflows from Britain. The news about FDI in Britain tends to focus on FDI inflows. For three decades, the consensus seems to be that Britain gains more by welcoming FDI, which is a vote of confidence in the country’s business climate. Increasingly, many people in Britain are not so sure that the benefits of FDI outweigh the costs. The most basic anxiety is that foreign ownership may lead to factory closures and job losses. While debates rage, it is clear that blocking FDI inflows would undermine Britain’s long-standing support for open markets, which would reduce its attractiveness as a place to do business.
Read any one of these attached articles about FDI and respond with an essay about your analysis and thoughts about FDI.
Foreign Direct Investment in the US.pdf
How U.S. States are Targeting Foreign Direct Investment.docx
Does the ‘foreign’ in ‘foreign direct investment’ matter.docx
Expenditures by Foreign Direct Investors for New Investment in the United States.docx
FOREIGN DIRECT INVESTMENTForeign Direct Investment (FDI) refers to the direct investment in activities that controland manage value-added activities in other countries. portfolio foreign…