FDI Full Form | Full Form of FDI | What is FDI Full Form
FDI Full Form - Foreign Direct Investment ( full form of fdi )
Full Form of FDI
- FDI stands for Foreign Direct Investment. ( full form of fdi )
- It's the investment made by a corporation based in one country into a corporation based in another country.
- It differs from portfolio flow wherein a foreign company invests within the equities listed on the stock market of a country.
- It is called direct investment because the investor is seeking control or influence over a corporation or entity of a country.
- The foreign direct investment is typically made into countries which have open economies, high growth prospects and skilled workforce at relatively cheap rates.
Benefits of FDI
- FDI features a number of benefits. Number of the main benefits are given below:
- It generates employment within the country
- It brings fresh capital within the country
- It improves forex position of the country
- It brings new skills and technologies into a country
- It promotes exports and increases tax revenues
- It gives the investor company access to foreign market of a country
- The investor company can reduce the value of production if labor is reasonable within the target foreign market.
- The investor company can utilize the natural resources of a country like metals, fossil fuel etc.
Types of FDI ( full form of fdi )
- There are two types of FDI
- Greenfield FDI
- Brownfield FDI
Types of FDI
- It refers to the FDI where a foreign company invests within the existing business in a country.
- It doesn't establish a replacement office or production facility.
- It purchases the prevailing production facility in a country to grow the prevailing business.
- For eg, Vodafone bought Hutch.