date:Aug 29, 2012
FDI is done for many reasons - take advantage of cheaper wages in the country, and special investment privileges such as tax exemptions offered by the country as an incentive to gain tariff-free access to the markets of the country or the region. FDI is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
As part of the national accounts of a country, FDI refers to the net inflows of investment to acquire a lasting mana