Why might a corporate based outside a bloc choose FDI as their method of entry into the bloc?
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Foreign direct investment happens when an individual or business owns 10% or more of a foreign company.1 If an investor owns less than 10%, the International Monetary Fund defines it as part of their stock portfolio.
A 10% ownership doesn't give the individual investor a controlling interest in the foreign company. However, it does allow influence over the company's management, operations, and policies. For this reason, governments track investments in their country's businesses.
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