Foreign Direct Investment (FDI) - (A Credit Management Topic)
Foreign direct investment (FDI) refers to long term participation by a country A into country B (in this case Pakistan). It usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or negative). Foreign direct investment (FDI) is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intro company loans". In a narrow sense, foreign direct investment refers just too building new facilities. The numerical FDI figures based on varied definitions are not easily comparable. As a part of the national accounts of a country, and ...