Trade & External
Foreign direct investment (FDI)
Foreign direct investment is cross-border investment where a foreign entity acquires a lasting management interest — typically 10% or more of voting stock — in a business in another country, as opposed to passive portfolio holdings. A German carmaker building a factory in Mexico counts as FDI inflow to Mexico.
Why it matters
FDI inflows signal how much confidence global capital has in a country's growth prospects and institutions.
Also known as: FDI, foreign investment