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Describe Foreign Direct Investment (FDI). What forms can FDI take? What are some possible benefits and costs to home and host countries?

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The response address the queries posted in 627 words with references.
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Foreign Direct Investment

In the present times, the whole world is transforming into a single entity from the business point of view due to rapidly increasing globalization. Many large organizations are seeking to go global for widening their market coverage area. For this purpose, these organizations invest into some foreign countries. Foreign Direct Investment (FDI) is a form of investment in which a company invests in some foreign country (Foreign Direct Investment, n.d.). It may be in the form of starting a subsidiary, joint venture or acquiring stakes in an existing company. FDI decisions are influenced by several factors such as political & economic stability, government policy, industrial structure, etc. Investment in ...

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The response address the queries posted in 627 words with references.