Foreign Direct Investment (FDI)

Foreign Direct Investment (FDI) is the movement of capital across national boarders, in a manner that grants the investor control over the acquired asset.

Companies own and control directly a foreign operation. It symbolizes the highest stage of internationalization. So it is not suitable for all the companies, International experience is recquired.

Foreign subsidiary can be set up for any type of value chain activity: Research&Development (R&D), manufacturing, marketing&sales, service…

There are two forms of FDI: greenfield investments and acquisitions.
Greenfield investments are foreign operations starting from scratch. Acquisitions represent the purchase of a controlling stake in an existing firm.

This internationalization form is just for master companies.

Keep in mind that different participation strategies may be selected for each country or even for each product!