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What is the full form of FDI?
Question

What is the full form of FDI?

A.

Federal Domestic Index

B.

Foreign Domestic Index

C.

Foreign Direct Investment

D.

Federal Deposit Investment

Correct option is C

The correct answer is (c) Foreign Direct Investment.
· Foreign Direct Investment (FDI) refers to an investment made by a company or individual in one country into business interests located in another country.
· It typically involves establishing business operations, such as ownership of a company, or acquiring assets, such as real estate or manufacturing facilities, in the foreign country.
Information Booster:
· FDI plays a crucial role in the development of emerging economies by providing capital, expertise, and technology.
· FDI can take the form of greenfield investment (building new facilities) or brownfield investment (merging or acquiring existing facilities).
· FDI is important for both the investor and the host country, leading to job creation, transfer of knowledge, and global integration.
· Countries often compete to attract FDI by offering incentives like tax breaks or relaxed regulatory frameworks.

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