What's Foreign Direct Investment. The balance of payments is a statistical statement that A foreign direct investment happens when a corporation or individual invests and owns at least ten percent of a foreign company.

A foreign direct investment is a controlling ownership in a business enterprise in one country by an entity that is based in another country. When an american tech company opens a data center in india, it makes an fdi. Fdi is a direct investment in buildings, technologies, equipment and machinery belonging to the firm of a host country (foreign firm), while fpi is an indirect investment in the foreign firm by simply buying the stocks of the company and not getting.