Foreign investment

Direct investment (FDI) denote investments by which entities resident in an economy acquire or have acquired a lasting interest in an entity resident in a foreign economy. The lasting interest implies the existence of a long-term relationship between the investor and the investee company and exercise a significant influence of the first on the management of the second. By convention, it is considered that there is sustained interest and thus direct investment when a company owns at least 10% of capital or voting rights of a company resident in a country other than his own.

These equity investments can take many forms, the main ones being: the creation of companies or businesses (so-called investment "  greenfield  "), acquisitions and mergers, reinvestment in foreign subsidiaries profits that they realize ( "profits reinvested ").The direct investment abroad , or foreign direct investment ( FDI abbreviated translation of the buy erythropoietin acronym FDI for Foreign Direct Investment ) by the OECD, are the international movements of capital made to create, develop or maintain an overseas subsidiary and /  or exercise control (or significant influence) on the management of a foreign company.

Driving multinationalization companies, FDI also cover well the creation of subsidiaries abroad and cross-border mergers and acquisitions or other financial relationships (including loans and inter-company loans).

Two main reasons are the cause of FDI:

reducing costs (operating cost of natural resources or impossible to carry; use of a cheaper workforce, hence the fear that FDI can participate in the relocation trend; tax optimization);
the conquest of new markets difficult to penetrate by exports alone.
If the effect of FDI is generally considered positive on the growth of the host country (including through induced technology transfer), it is ambiguous and discussed on international trade, employment in countries investors on working conditions and the environment.

Measured by statistics from the balance of payments, FDI experienced a sharp increase since the mid-1980s and make a decisive contribution to the globalization of economies.

FDI is also one of the main indicators of economic attractiveness of the country.

Review on FDI in 2013 : 

France hosts on its soil 4th stock of foreign direct investment (FDI) in the world, after the United States, China and the UK. Global flows of foreign direct investment (FDI) grew by 9% to 1.452 trillion dollars in 2013. The main FDI host country is the United States, China, Russia, Hong Kong and Brasil. BRICS become key players and receive 21% of all FDI in 2013 against 11% in 2005-2007. According to data from the Bank of France, foreign investment increased by 3.3% and equity capital transactions representing new locations on French territory, are up 53% in 2013.