Foreign Direct Investment (FDI) refers to the investment made by a foreign entity (individual, business, or government) into the ownership of assets or business operations in another country. It involves a long-term interest and control by the foreign investor over the business in the host country. FDI can take various forms, including the establishment of new facilities, the acquisition of existing businesses, or substantial investments in joint ventures. Advantages of FDI: Economic Growth: FDI can contribute to the economic growth of the host country by bringing in capital, technology, and managerial skills, which can enhance productivity and efficiency. Job Creation: FDI often leads to the creation of jobs in the host country, both directly in the foreign-invested enterprises and indirectly in related industries and services. Transfer of Technology and Skills: Foreign investors bring advanced technologies, expertise, and management practices that can lead to knowledge transfer and skill development in the host country. Market Access and Diversification: FDI provides host countries with access to international markets and facilitates the diversification of their economic activities, reducing dependence on specific sectors. Infrastructure Development: Foreign investors may contribute to the development of infrastructure in the host country, including transportation, communication, and energy facilities. Increased Foreign Exchange Reserves: FDI inflows contribute to a host country's foreign exchange reserves, which can be beneficial for maintaining currency stability and financing imports. Disadvantages of FDI: Dependency and Control Issues: Host countries may become dependent on foreign investors, and there is a risk of losing control over key sectors of the economy to foreign entities.