How has a shift toward democratic political institutions and free market economies affected fdi?.

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31-10-2022
Business

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How has a shift toward democratic political institutions and free market economies affected fdi?.

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NishaAhuja NishaAhuja · Answer 1 · 2022-11-04T07:54:15+01:00

Political and economic changes in developing countries have fueled FDI. Although trade obstacles have decreased, businesses continue to worry about protectionist influences.

What is FDI stand for?

Foreign direct investment (FDI) is a type of cross-border investment in which an investor from one economy develops a long-term interest in and a sizable amount of control over a business from another economy.

How does FDI benefit a nation?

If a corporation invests money outside of its native country in equipment, factories, buildings, or other infrastructure, this is known as foreign direct investment.
A business can get the raw materials it need for its production processes by investing globally.

Learn more about Foreign direct investment (FDI)

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