Foreign Direct Investment Policies

Foreign Direct Investment (FDI) Policies refer to a country's regulations and guidelines regarding investment made by foreign entities in its economy. These policies determine how much foreign investors can own in local businesses and what sectors they can invest in. They aim to attract FDI by ensuring a stable environment for investors while protecting national interests. Good FDI policies can boost economic growth, create jobs, and enhance technology transfer, benefiting both the host country and the investor. However, countries must balance openness to investment with protecting their strategic sectors and local businesses.