otseinvesteeringud

Otseinvesteeringud, known in English as direct investment or foreign direct investment (FDI), refers to an investment made by a company or individual in a business enterprise located in another country. This type of investment involves acquiring a significant stake, typically a controlling interest, in a foreign company, rather than simply purchasing stocks or bonds. The primary goal of otseinvesteeringud is to establish or expand business operations abroad, which can include setting up new facilities, acquiring existing companies, or forming joint ventures.

Otseinvesteeringud can take various forms. Greenfield investments involve building new facilities from the ground up in a foreign country, while brownfield investments entail acquiring or merging with an existing foreign company. Joint ventures involve two or more companies from different countries pooling resources to create a new entity. These investments are distinct from portfolio investments, which are passive holdings of foreign securities.

The motivations for engaging in otseinvesteeringud are diverse. Companies may seek access to new markets, cheaper labor, raw materials, advanced technology, or favorable tax regimes. Otseinvesteeringud can also be a strategy to gain a competitive advantage, diversify risks, or overcome trade barriers. For the host country, otseinvesteeringud can bring capital, technology, managerial expertise, job creation, and economic growth, contributing to overall development. However, concerns can arise regarding potential negative impacts such as increased competition for domestic firms, exploitation of labor, or environmental degradation.