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What Is Foreign Direct Investment Definition And Meaning

What Is Foreign Direct Investment Definition And Meaning

FOREIGN DIRECT INVESTMENT

According to the definition given by JMF, FDI is the category of international investment that reflects the objective of a resident entity in one economy (direct investor or parent enterprise) by obtaining a ‘lasting interest’ and control in an enterprise resident in another economy (direct investment enterprise).

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The IMF definition of FDI includes as many as twelve different elements, namely: equity capital, reinvested earnings of foreign companies, inter-company debt transactions including short-term and long-term loans, overseas commercial borrowings (financial leasing, trade credits, grants, bonds), non cash acquisition of equity, investment made by foreign vantage capital investors, earning data of indirectly held FDI enterprises, control premium, non-competition fee and so on.

What Is Foreign Direct Investment Definition And Meaning What Is Foreign Direct Investment Definition And Meaning Reviewed by Blog Editor on Sunday, October 01, 2017 Rating: 5

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