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Foreign Direct Investment

The direct investment by an individual, company, or entity of one country into a business, company, or entity in another country where the investor owns at least 10% of the voting power of the business, company, or entity and exercises a significant degree of influence over its management.

Foreign direct investments differ from indirect investments such as portfolio flows, where foreign entities invest in equities or shares listed on a country’s stock exchange and exert no control over the management of that company.

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