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The document discusses Foreign Direct Investment (FDI), defining it as when a firm invests directly in operations in a foreign country. It outlines the three main types of FDI: Greenfield investment, mergers and acquisitions, and joint ventures, highlighting their economic benefits. Additionally, it emphasizes the strategic behavior of firms in FDI to enhance global competitiveness and market presence.
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Roll No: 53,
Toc H Institute of Science & Technology
(An ISO 9001:2008 Certified Institution)
Arakkunnam, Ernakulam — 682313
*s AN
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INTERNAL ASSESMENT RECORDFOVEIIN Disect Investment
DI ¥
Foreign Divect investment (Foi) occurs
[when o Fivm invest cicrecd!y in ae pean,
Umariep & Jowls o8 Sewice in ~ Fowign country,
ioe
Accoreling to u§ Dofartment of commerce. FD] ecturs
whenever co Ug Citizen, orgenigation oy o-ffifratect
Bours teolves w inteveSt of |v Percent oF move jn
& fereisn business ‘entity, onece a Jism becomes 4
toultinetional Onporprice .
Thee ere tus main qypes of FOI,
4) GreenSelel imesiment : ThIS is when a ComAny builels
Dew operctions from
Scratch in a Foreign country, such
Of Constructing New
Ptecluetion fecilities oy o$fices.
MS type vj FD! often creates new Jobs mel con
J Signiticng @conomic benefits for pie host
Moun Ficlet Tnvesjmeng “A Foreign Cemany AQuites
with om emisting company in 4a hosp cane
ag Assets, onel while it
Con bying in Now
tcchnology rel Momgemens Prctices,
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