Direct investment

Updated: Aug 20, 2021

Investment by companies domiciled in one country in companies domiciled in another, e.g. by take-over or by providing the initial capital for a new company or increasing that of an existing one; in the usual sense of the term it involves investor control and always managerial involvement. Governments normally prefer direct investment to portfolio investment from overseas because the former also involves a technological input.

Reference: The Penguin Dictionary of Economics, 3rd edt.

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