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What is Foreign direct investment (FDI)?

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/01

Foreign Direct Investment (Further mentioned to as FDI's) is the accomplishment of a company from one country investing into another company/entity in a different country. There are numerous methods to achieve FDI's such as: •Distribution agreements •Wholly owned subsidiaries •Portfolio Investments •Strategic alliances & Joint Ventures.2 examples:1)The Barclays Banking group, which was founded in the UK (London), owns a subsidiary in Africa called Absa.2) Walmart of America entered the South African market by procurement of different retail stores operating in South Africa. These stores included but are not limited to; Game, Makro, DionWired and Builders Warehouse