At the core of foreign direct investment are international flows of capital.

Question

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Foreign direct investment refers to the investment made by a company of one country into a company of another country with the aim of establishing a lasting interest and control over the company invested in. The investment involves cross-border transactions of capital where the investor's company acquires a significant interest in the target firm. Therefore, at the core of foreign direct investment are international flows of capital.

At the Core of Foreign Direct Investment Are International Flows