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 a significant stake in a foreign company or establishing new business operations, such as a subsidiary or branch. FDI is a key component of international economic integration and can lead to job creation and technology transfer in the host country. Countries often encourage FDI as it can stimulate economic growth and development. Investors benefit from access to new markets, resources, and potential profits. However, FDI can also raise concerns about local businesses and economic sovereignty, leading to discussions about regulations and policies.