Foreign Direct Investment
Foreign direct investment (FDI) is an investment made to acquire long-term interest in an enterprise operating in an economy other than that of the investor (World Bank, 2011). FDI has been more beneficial to both investors and host countries as compared to alternatives. The two parties, investors and host countries, engage in FDI and benefit in various ways. Investors gain new markets, attain efficiency, and aquire cheaper and more readily available resources, from the host countries.Moreover, FDI benefits the host countries by contributing to their economic growth, creating empolyoment, transfering technology and knowlegde, and increasing government revenue through ...
