The document discusses foreign direct investment (FDI). Key points: 1. FDI involves purchasing physical assets or a significant ownership stake in a company located in another country to gain management control. 2. FDI flows have grown worldwide as firms seek resources, markets, knowledge, stability, and advantages like low labor costs. 3. There are two main types of FDI - horizontal where a firm expands into a new foreign market, and vertical where a firm integrates operations across borders.