What is the full form of FDI
What is the full form of FDI
FDI: Foreign Direct Investment
FDI stands for Foreign Direct Investment. A foreign direct investment (FDI) is an investment made by a firm (Company) or individual in one country into business interests located in another country.
With FDI, foreign companies are directly involved with day-to-day operations in the other country. This means, FDI is not restricted only to international movement of capital. Its definition also encompasses the international movement of elements that are complementary to capital – such as skills, processes, management, technology etc.
FDI Benefits:
- Increased Employment and Economic Growth
- Increase in Exports
- Human Resource Development
- Development of Backward Areas
- Provision of Finance & Technology
- Exchange Rate Stability
- Stimulation of Economic Development
- Improved Capital Flow
- Creation of a Competitive Market