Foreign direct investment (FDI) is an important factor in acquiring investments and grow the local market with foreign finances when local investment is unavailable. There are various formats of FDI and companies should do a good research before actually investing in a foreign country.

It has been proved that FDI can be a win-win situation for both the parties involved. The investor can gain cheaper access to products/services and the host country can get valuable investment unattainable locally.

There are various vehicles through which FDI can be acquired and there are some important questions the firms must answer before actually implementing a FDI strategy.