What does FDI stand for?

Foreign direct investment (FDI) refers to a significant investment made by a company or individual in one country in business interests located in another country. This often involves establishing business operations or acquiring assets in the foreign country, such as purchasing a subsidiary, setting up a branch, or expanding existing facilities. FDI is a crucial component of economic globalization as it often leads to job creation, technology transfer, and increased production capacity in the host country.

The concept of FDI is significant because it differs from other forms of investment, such as portfolio investment, which typically involves purchasing stocks or bonds without direct control over the companies involved. Understanding FDI is essential in the field of international affairs as it impacts global economic dynamics, influences trade policies, and shapes international economic relations.

Other options provided all represent different combinations of terms that do not accurately reflect what FDI stands for, which is specifically recognized within economic literature as "foreign direct investment."