answersLogoWhite

0


Best Answer

When a company invests in production in a different country this is known as "foreign direct investment". This can assist less developed countries to advance more quickly and be of benefit to their population.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar
More answers
User Avatar

AnswerBot

6mo ago

Foreign direct investment (FDI) is crucial to the world economy as it brings in capital, technology, and expertise to host countries, stimulating economic growth and creating jobs. FDI also fosters international trade, enhances productivity, and encourages technological advancements. Additionally, it plays a vital role in developing countries by attracting investment for infrastructure projects and boosting overall economic development.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How important is foreign direct investment to the world economy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What have you learned about foreign direct investment and the political economy of trade?

foreign direct investment is that investment in which a foreign country invests in a host country.


What isimpact of FDI on Indian economy?

Implications of Foreign Direct Investment in Indian Economy


What is the level of Foreign Direct Investment in the Rhode Island Economy?

$900m


Is there any difference between fdi and direct investment?

If the direct investment is foreign, then no, since FDI stands for 'foreign direct investment'.


What does direct foreign investment do?

What does direct foreign investments do?


Distinguish between foreign direct investment and portfolio investment?

Foreign direct investment is the provision of capital into a company or project by a financier who is from a foreign country. In portfolio investment, anyone can invest in the portfolio, whether or not he is from a local company or a foreign company.


Advantages and disadvantages of foreign company?

Foreign direct investment company


Can motivate forgien direct investment?

There are many factors that motivate foreign direct investment. The main point of motivation is the competitiveness to obtain the foreign direct investments within each developing country.


Full form of fdi?

Foreign direct investment


What is FDI?

Foreign direct investment (FDI) is the direct investments in productive assets by a company incorporated in a foreign country, as opposed to investments in shares of local companies by foreign entities. it is an important feature of an increasingly globalized economic system.


Is china open to foreign trade and investment?

Yes, Chinese government is very much encouraging foreign direct investment.


What factors can discourage foreign direct investment?

Insecurity in a country