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.

No.-1. Download 15000 One Liner Question Answers PDF

No.-2. Free Download 25000 MCQ Question Answers PDF

No.-3. Complete Static GK with Video MCQ Quiz PDF Download

No.-4. Download 1800+ Exam Wise Mock Test PDF

No.-5. Exam Wise Complete PDF Notes According Syllabus

No.-6. Last One Year Current Affairs PDF Download

No.-7. Join Our Whatsapp Group

No.-8. Join Our Telegram Group

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.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top