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Advantages of Foreign Direct Investments

Advantages of Foreign Direct Investments

Foreign direct investment or FDI is a type of investment in the form of controlling ownership where an investor invests into a business that is based in another country. The main difference between foreign direct investment and foreign portfolio investment is the notion of ‘lasting control’ that comes with some control over business decisions. ‘ A foreign investor gets a minimum of 10 per cent voting rights in the business for an investment to be considered as FDI. An overseas…

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