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DIRECT FOREIGN INVESTMENT

29 October, 2015 - 17:03

Direct foreign investment (DFI) is an international business activity in which equity is accompanied by actual management. There are many reasons why an MNC might risk both money and management talent in a foreign operation. In general, a company invests overseas to obtain raw material (extractive investor); to acquire manufactured goods at a lower cost (sourcing investor), or to penetrate local markets (market investor).