Investment (Foreign)
Buying assets in foreign country.
Formula
FDI Flow = Capital Invested Abroad − Capital Withdrawn
Real World
Toyota's decision to build a manufacturing plant in Derby, UK was foreign direct investment — creating jobs and transferring technology into the UK economy.
Exam Focus
Distinguish FDI (controlling stake, long-term) from portfolio investment (passive shareholding) — examiners penalise conflation of the two.
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