# data[].attributes.body
At the end of this topic, students are able to:

1) Describe the meaning of Foreign Direct Investment (FDI);
2) Discuss how FDI works and provide examples;
3) Explain the different between horizontal, vertical and conglomerate FDI; and
4) Identify and give examples of advantages and disadvantages of FDI for developing countries.

# data[].attributes.headline
What Is a Foreign Direct Investment (FDI)? 

# data[].attributes.subject
What Is a Foreign Direct Investment (FDI)? 

# data[].attributes.body
A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.

Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company.

"To listen well is as powerful a means of communication and influence as to talk well"
-John Marshall

# data[].attributes.attachment_link.title
Foreign Direct Investment and its Roles in Economic Development

# data[].attributes.body
Foreign direct investments are commonly made in open economies that offer a skilled workforce and above-average growth prospects for the investor, as opposed to tightly regulated economies.

Foreign direct investment frequently involves more than just a capital investment. It may include provisions of management or technology as well.

# data[].attributes.body
Foreign direct investments are commonly categorized as being horizontal, vertical or conglomerate.

A horizontal direct investment refers to the investor establishing the same type of business operation in a foreign country as it operates in its home country, for example, a cell phone provider based in the United States opening stores in China.

A vertical investment is one in which different but related business activities from the investor's main business are established or acquired in a foreign country, such as when a manufacturing company acquires an interest in a foreign company that supplies parts or raw materials required for the manufacturing company to make its products.

A conglomerate type of foreign direct investment is one where a company or individual makes a foreign investment in a business that is unrelated to its existing business in its home country. Since this type of investment involves entering an industry in which the investor has no previous experience, it often takes the form of a joint venture with a foreign company already operating in the industry.

# data[].attributes.headline
Advantages and Disadvantages of FDI for Developing Countries

# data[].attributes.subject
Advantages and Disadvantages of FDI for Developing Countries

# data[].attributes.body
*Research at home

# data[].attributes.attachment_link.title
A* Evaluation: Foreign Direct Investment