Tell me FDI means what?
FDI or Foreign Direct Investment is a concept where a company, individual or a government decides to invest in another country’s business or assets. The aim of this investment is to have a significant control over that business and create a long term investment. It is important with respect to economic growth, international trade, job creation and advancement of technology.
For example:
Tesla setting up manufacturing units in China and Germany is a form of FDi where it caters to the demand of electric vehicles, market expansion, cost reduction and overall long term growth of the company.