FDI stands for

FDI stands for

• A. Foreign Domestic Investment
• B. Foreign Direct Investment
• C. Foreign Development Initiative
• D. Free Direct Investment

Answer: (B)

Foreign Direct Investment is investment by a firm or individual from one country into business activities in another country, with a lasting interest and a degree of influence or control—often seen when the investor owns a substantial share and can affect how the business is run. This distinguishes it from simply buying stocks in a foreign company, which doesn’t imply control. The other phrases don’t match the established term economists use for cross-border investment that involves control, so the standard meaning is that FDI stands for Foreign Direct Investment.

Foreign Direct Investment is investment by a firm or individual from one country into business activities in another country, with a lasting interest and a degree of influence or control—often seen when the investor owns a substantial share and can affect how the business is run. This distinguishes it from simply buying stocks in a foreign company, which doesn’t imply control. The other phrases don’t match the established term economists use for cross-border investment that involves control, so the standard meaning is that FDI stands for Foreign Direct Investment.