FDI FULL FORM
Full Form of FDI : The full form of FDI is Foreign Direct Investment.
What is the full form of FDI?
No:1. The full form of FDI is Foreign Direct Investment.
No:2. It is the investment made in a corporation based in one nation into an organization based in other nation.
No:3. It varies from the movement of the portfolio in which a multinational investor invests in the equities listed on a nation’s stock market.
No:4. As the investor seeks to influence or control over such a company of a nation, it is simply called direct investment.
No:5. Foreign direct investment is typically made at comparatively inexpensive rates in nations with open economies, high growth potential and qualified workers.
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Various types of FDI
There are multiple kinds of FDI, two types of FDI frequently described are :
No:1. Brownfield FDI
a). It relates to the FDI in which a foreign company invests in a country’s current business.
b). It does not build a new office or manufacturing plant.
c). To develop the existing company, it buys the current manufacturing plant in a region.
d). For instance, Vodafone acquired Hutch.
No:2. Greenfield FDI
a). It corresponds to FDI where foreign corporation creates a new corporation as its branch rather than investing in an established company of a country.
b). For instance, Amazon, Google and Facebook.
Advantages of FDI
There are several advantages to FDI; a few of the main benefits are listed below :
No:1. It creates jobs in the country.
No:2. In the nation, it brings new capital
No:3. Increases the country’s forex role
No:4. In a nation, it carries new skills & technologies
No:5. It increased prosperity & increases tax revenues
No:6. It provides the investor company access to a nation’s international market,
No:7. When wages are lower in the international target market, the investor organization may reduce production cost.
No:8. The investor corporation can use a country’s natural resources, such as metals, fossil fuels, and so on.
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