... a long-term relationship reflecting a lasting interest of an entity resident in one economy (direct investor) in an entity resident in an economy other than that of the investor. The direct investor's purpose is to exert a significant degree of influence on the management of the enterprise resident in the other economy. In terms of the definition, there are two distinctive features of FDI in comparison with portfolio investment, which is a pure transfer of capital and concerned with realizing immediate income or capital gains. FDI involves ownership (in part or whole) and control of a foreign operation, including decision-making, subsequent production, and marketing activities, etc. FDI is usually accompanied by the transference of a bundle of capital, technology, and entrepreneurial skills across national boundaries. The majority of the FDI comes from multinational companies. Those companies are therefore the dominant vehicle for FDI, while FDI is a means of fulfilling the objectives ...

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