An investment made by a company or entity based in one
country, into a company or entity based in another country. Foreign
investment refers to the net inflows of investment to acquire a lasting
management interest (10 percent or more of voting stock) in an enterprise
operating in an economy other than that of the investor.
The foreign direct investor may acquire voting power of
an enterprise in an economy through any of the following methods:
• by
incorporating a wholly owned subsidiary or company
• by acquiring
shares in an associated enterprise
• through
a merger or an acquisition of an unrelated enterprise
• participating
in an equity joint venture with another investor or enterprise