Definition: FDI stands for Foreign Direct Investment, a component of a country’s national monetary accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not encompass foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially "hot money" which can vamoose at the first sign of trouble, whereas FDI is durable and for the most part useful whether things go well or deficiently. (Econterms)
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