This document discusses foreign direct investment (FDI). It defines FDI as investment made by transnational corporations to increase international business, usually through establishing new production facilities abroad. Businesses and governments engage in FDI to expand markets and acquire foreign resources. There are various methods for firms to invest abroad, like joint ventures or mergers and acquisitions, which are less risky than direct FDI. The document also discusses factors that attract FDI to countries, like market size, infrastructure, and political stability. It outlines sectors where FDI is permitted and not permitted in India.