ABSTRACT
Foreign direct investment (FDI) occurs when an investor based in one country acquires an asset in another country with the intention of managing the same. Their management dimension distinguishes FDI from the general portfolio investment in foreign stocks, bonds, and other capital market instruments. ‘FDI’ is defined by the Organization for Economic Co-operation and Development (OECD, 2008) as ‘capital invested for the purpose of acquiring a lasting interest in an enterprise and of exerting a degree of influence on that enterprise’s operations’.
