Foreign direct investment (FDI)
What Foreign direct investment (FDI) means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Foreign direct investment (FDI)
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Reference: Pearson Edexcel
Occurs when a firm in one country makes a physical investment or acquires significant business interests in another, such as building a new factory or acquiring a foreign business.
Investment that accelerates the economic power of regions such as Asia and Africa.
Topics that use Foreign direct investment (FDI)
- Growing economies (Pearson Edexcel A-Level)
- Trade and growth (Pearson Edexcel A-Level)
Related terms
- Economic growth
- International trade
- Base year
- Comparative advantage
- Demand-pull inflation
- Economic vulnerability
- Emerging markets
- Income inequality
Using Foreign direct investment (FDI) in the exam
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