Category: Foreign Direct Investment

Cross Boarder Merger and Acquisitions


Cross Boarder Merger and Acquisitions over the world has grown very strongly these days. In the year 2006, cross boarder merger and acquisitions increased at a rate of 23 percent. Growing value of merger and acquisitions was largely contributed by the better performance of the stock market and increased asset value of enterprises.

Number of deals among the enterprises globally reached at a record level led by desires among the firms to take part in global competition.

Definition of Foreign Direct Investment (FDI)


Foreign Direct Investment, or FDI, is a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor.

Foreign Direct Investment (FDI) Performance and Growth


Matrix of inward FDI performance and potential, 2001-2003
   High FDI performance
Front-runners		 Low FDI performance
Below-potential

Benefits of Foreign Direct Investment


One of the advantages of foreign direct investment is that it helps in the economic development of the particular country where the investment is being made.

This is especially applicable for developing economies. During the 1990s, foreign direct investment was one of the major external sources of financing for most countries that were growing economically. It has also been noted that foreign direct investment has helped several countries when they faced economic hardship.

FDI – Exploitation of Labour