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Frequently Asked Questions

This page has been established by Henner Diekmann to provide answers to some of the most frequently asked questions relating to foreign direct investment.


What is the definition of FDI (Foreign Direct Investment)?

Foreign direct investment is defined as investment by an entity or company in one country into an entity or company in another country. Direct investments give the investor a significant degree of control and influence over the investment. This differs from indirect investments, which involve entities from overseas investing in equities that are listed on the stock exchange within the investment country.


What data sources are used by fDi Benchmark?

fDi Benchmark collates data from a number of leading global financial data sources. These include among others the World Bank, the Financial Times, the International Monetary Fund, the Economist Intelligence Unit, Towers Watson and Dun & Bradstreet.


What is Investing Across Borders?

Investing Across Borders is a new initiative from the World Bank, designed as a comparison tool for foreign direct investment around the world. Indicators are presented the laws, practices and regulations of economies that have an effect on how foreign companies start new businesses, invest across different sectors, arbitrate commercial disputes and access industrial land. These indicators are based on data that comes from questionnaires completed by a series of local experts in each of the economies surveyed, including business consultants, lawyers and specialists in investment promotion.


How did global foreign direct investment change in 2015?

Foreign direct investment global flows increased in 2015 by 25%, reaching $1.7 trillion. This is the highest level seen since the beginning of the global financial crisis which began in 2007. The increase was largely influenced by corporate and financial restructuring.