Foreign direct investment or FDI is any investment that is made in a foreign country’s business by a company or a person in the domestic country with the intention of holding control over the foreign company.
The lasting interest is a condition to be considered an investment as FDI because a simple portfolio investment in a foreign company’s stock is not intended for controlling the foreign corporation. If a person intends to have a foreign direct investment in a company it should at least acquire 10% of the voting shares in that company.
To do this, people can directly acquire 10% or more of the voting stock, joint venture, or a merger with a foreign company, and starting a foreign subsidiary company of a domestic business.
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