Foreign Direct Investment

Direct investment is defined as investing in buildings, machinery and equipment as compared to making a portfolio investment, which is considered an indirect investment.  Generally speaking, given rapid growth and change in global investment patterns, the definition of FDI has been broadened to include the acquisition of a management interest in a company or enterprise outside the investing firm’s home country. As such, it may take many forms, such as a direct acquisition of a foreign firm, construction of a facility, or investment in a joint venture or strategic alliance with a local firm with attendant input of technology, licensing of intellectual property.

The following four part video series(each video is less than 2 minutes in length) provides a succcinct overview of FDI and why it is an essential component of economic development.