How Foreign Direct Investment Works?
Foreign direct investment is when an investor living in one country invests in a business based in another country. A foreign direct investment involves a long-term relationship between an investor and a business. To uphold the lasting interest, the foreign investor is given at least 10 per cent voting rights in the day to day functioning of the firm. Therefore, under FDI, the investors holds a certain degree of influence on the management of the enterprise where the investment is…