Reasons for FDI
Alan 1.1 Rugman and Simon Co Hinson, International Business, 5" Editfon, ®Pearson Education Umited 2009
Slide 3.7
Foreign direct investment
• FDI is the ownership and control of foreign assets. • FDI usually involves the ownership, whole or partially, of a company in a foreign country: a foreign subsidiary. • FDI is different from portfolio investment, which is the purchase of financial securities in other firms for the purpose of realizing a financial gain when these marketable assets are sold.