San Pedro, Madelline Kaye V.

BA 33

From the materials (articles and videos) posted in our Google classroom. Explain in your
own words any concepts and ideas about Foreign Direct Investment (FDI).

- A foreign direct investment is an investment made by a firm or individual in one country

in business interests in another country. It can take the form of starting a business elsewhere
or buying assets there, including ownership or control of a foreign corporation. In a sense,
FDI functions by buying the stocks or bonds of a foreign company. It takes a significant
investment to accelerate an entity's growth. Both developed and developing nations profit
from FDI. According to studies, FDI stimulates technological advancement, aids in the
development of human capital information, promotes the integration of international trade,
fosters a more competitive business environment, and strengthens business enterprises.

Example: McDonald's is the best example of a foreign direct investment corporation.

Observe that there are currently several McDonald's locations across the majority of Asian
nations, with an increase in the number of locations in each region. McDonald's investment
in Asia benefits the entire nation because it expands employment prospects and they also
spend in education and training to improve the capabilities of its staff.