Question

importance of foreign direct investment
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Answer 1

Foreign direct investment is critical for developing and emerging market countries. Their companies need the multinationals' funding and expertise to expand their international sales. Their countries need privateinvestment in infrastructure, energy, and water to increase jobs and wages.

Answer 2

Answer:

Foreign direct investment is when an individual or business owns 10 percent or more of a foreign company. If an investor owns less than 10 percent, the International Monetary Fund defines it as part of his or her stock portfolio.

A 10 percent ownership doesn't give the investor a controlling interest. It does allow influence over the company's management, operations, and policies. For this reason, governments track who invests in their country's businesses. 

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