DEMO — development content for layout testing. Not real editorial reporting.
DEMO content for development and layout testing — not real editorial reporting.
Foreign direct investment involves a lasting interest in an enterprise abroad — building a plant, acquiring a company or establishing a subsidiary.
How it works
Firms weigh access to customers, the availability of skills and suppliers, infrastructure, tax and regulatory regimes, and the predictability of policy.
Market access, costs, skills and policy stability all feature in cross-border investment decisions.
What to watch
Governments compete for investment through incentives, but research suggests fundamentals such as institutions and human capital tend to matter more over time.
Key concepts
- FDI
- Corporate strategy
