FDI
Business & Finance abbreviation · Economics
| Stands for | Foreign direct investment |
|---|---|
| Categories | Business & Finance |
FDI stands for Foreign direct investment, an economics abbreviation.
Investment by a company or individual in one country to acquire a lasting interest and significant control in a business in another country, conventionally at least 10 percent of voting power, such as building a factory or buying a local company. It differs from portfolio investment in shares and bonds.
Example: The carmaker's $2 billion battery plant is the largest FDI project in the country this year.
Usage notes
Data on FDI flows are compiled by UNCTAD in its annual World Investment Report and by the OECD. Governments court FDI for jobs, technology and exports but may screen deals on national-security grounds, as the US does through CFIUS. Greenfield FDI builds new facilities, while brownfield FDI acquires existing ones.
Related abbreviations
More economics abbreviations
- CPI – Consumer price index
- DSGE – Dynamic stochastic general equilibrium
- DWL – Deadweight loss
- ECB – European Central Bank
- EMU – Economic and Monetary Union
- ERM – Exchange Rate Mechanism
- FFR – Federal funds rate
- FOMC – Federal Open Market Committee
- FPI – Foreign portfolio investment
- FTA – Free trade agreement
- FX – Foreign exchange
- GDI – Gross domestic income