What is the full form of FDI?

A. Final Direct Investment

B. Foreign Direct Investment

C. Foreign Direct Incentive

D. Final Data Investment

Detailed Solution:

The Correct answer is Foreign Direct Investment.

Key Points:

• The full form of FDI is Foreign Direct Investment.
• It is the investment made in a corporation based in one nation into an organization based in another nation.
• It varies from the movement of the portfolio in which a multinational investor invests in the equities listed on a nation’s stock market.
• As the investor seeks to influence or control such a company of a nation, it is simply called direct investment.
• Foreign direct investment is typically made at comparatively inexpensive rates in nations with open economies, high growth potential and qualified workers.