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What is foreign direct investment?

It’s extremely common for investors to invest outside of their own country in order to create a diverse portfolio. That could be done by purchasing shares or bonds in a foreign company, for example. However, an alternative to owning a foreign business’s securities is outright capital investment. This is called ‘foreign direct investment’ (or FDI). […]

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What is economic diversification?

When an economy relies too heavily on a particular industry or industries, sustaining economic growth can be challenging. Any downturn in these sectors can leave a country vulnerable economically if other industries can’t sufficiently support it. This is why diversification is such an important economic strategy, helping countries to spread their risk and become more […]

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