The policy instruments that home countries can use to promote FDI Introduction: Foreign Direct Investment (FDI) refers to the investment made by an individual or firm based in one country in order to have control over the business based in another country. FDI gives the foreign business entity control over the functioning of the local business entity as the firms investing in the companies also brings in technology, knowledge and skills.

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Chapter 7.5, Problem 2QS5

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The policy instruments that home countries can use to promote FDI

Introduction:

Foreign Direct Investment (FDI) refers to the investment made by an individual or firm based in one country in order to have control over the business based in another country. FDI gives the foreign business entity control over the functioning of the local business entity as the firms investing in the companies also brings in technology, knowledge and skills.

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