Characteristics

• Long-term Investment: Unlike short-term investments, FDI typically represents a lasting interest in a foreign operation, emphasising the investor's long-term perspective.
• Control and Influence: It's not merely about injecting capital; FDI often comes with a seat at the management table, allowing investors to influence the company's decisions.
• Risk and Reward: The direct nature of FDI means investors are more exposed to the host country's economic, political, and social fluctuations, but the potential for high returns can outweigh these risks.