FDI is the Foreign direct investment and it is an investment when one company from one country makes a physical investment in another country. The formation of multinational companies is an example of FDI. FDI also includes the investments which are made to acquire the permanent interest in an enterprise operating outside the home economy. In FDI, the parent company has the control over the new established company. FDI can provide a lot of benefits to the host country like increase in employment, boom in economic growth, and development in business etc.
