Foreign Direct Investment (FDI) refers to the investment made by a company or individual in one country into business interests in another country. This often involves acquiring assets or establishing business operations, such as factories or offices. FDI is a key driver of economic growth, as it can create jobs and enhance technology transfer. Countries often encourage FDI through incentives like tax breaks or relaxed regulations. Investors seek opportunities in foreign markets to diversify their portfolios and access new customers. Overall, FDI plays a significant role in global economic integration and development.