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    Economics A-Level

    Foreign direct investment

    What Foreign direct investment means in Economics A-Level, as defined for AQA.

    Definitions of Foreign direct investment

    Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.

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    Reference: AQA

    A transaction involving financial assets and liabilities recorded in the financial account, classified strictly within that account rather than the capital account.
    AQA · The balance of payments (study guide)
    Investment that multinational corporations drive as primary catalysts for globalisation, alongside establishing complex global supply chains.
    AQA · Globalisation
    Long-term physical capital investment in a host country that injects capital, creates employment and facilitates technology transfer.
    AQA · The balance of payments
    Investment that corruption and weak institutional factors deter.
    AQA · Economic growth and development

    Topics that use Foreign direct investment

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    Using Foreign direct investment in the exam

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