Foreign direct investment(FDI) occurs when a firm invests directly in new facilities to produce and/or market in a foreign country
the firm becomes a multinational enterprise
FDI can be in the form of
greenfield investments-the establishment of a wholly new operation in a foreign country
acquisitions or mergers with existing firms in the foreign country
The flow of FDIrefers to the amount of FDI undertaken over a given time period
Outflows of FDIare the flows of FDI out of a country
Inflows of FDIare the flows of FDI into a country
The stock of FDIrefers to the total accumulated value of foreign-owned assets at a given time