The document discusses foreign direct investment (FDI), which occurs when a firm invests directly in facilities in a foreign country. FDI has increased significantly over the past 30 years and can take the form of greenfield investments or acquisitions. Key factors driving the growth of FDI include avoiding trade barriers, deregulation in many countries, and the globalization of markets. There are both benefits and costs of FDI for home and host countries to consider. Government policies can influence FDI flows into and out of their countries through various incentives and restrictions.