Foreign Direct Investment (FDI) Risk

Foreign Direct Investment (FDI) risk refers to the potential for loss or negative outcomes when investing in businesses or assets in another country. This risk can arise from political instability, changes in government policies, economic fluctuations, or differences in legal systems. For instance, if a country imposes new regulations or experiences social unrest, foreign investors might face unexpected challenges, which can affect their returns or even lead to losses. Understanding FDI risk is crucial for investors to make informed decisions about where and how to invest their money internationally.