Foreign direct investment (FDI) is the category of international investment that reflects the objective of obtaining a lasting interest by an investor in one economy in an enterprise resident in another economy. The lasting interest implies that a long term relationship exists between the investor and the enterprise, and that the investor has a significant influence on the way the enterprise is managed. Such an interest is formally deemed to exist when a direct investor owns 10% or more of the voting power on the board of directors (for an incorporated enterprise) or the equivalent (for an unincorporated enterprise). FDI may be seen as an alternative economic strategy, adopted by those enterprises that invest to establish a new plant/office, or alternatively, purchase existing assets of a foreign enterprise. These enterprises seek to complement or substitute international trade, by producing (and often selling) goods and services in countries other than where the enterprise was first established. There are two kinds of FDI: the creation of productive assets by foreigners, or the purchase of existing assets by foreigners (for example, through acquisitions, mergers, takeovers). FDI differs from portfolio investments because it is made with the purpose of having control, or an effective voice, in the management of the enterprise concerned and a lasting interest in the enterprise. Direct investment not only includes the initial acquisition of equity capital, but also subsequent capital transactions between the foreign investor and domestic and affiliated enterprises. © European Commission
Foreign direct investment (FDI)
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Absolute territorial protection
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Abuse of dominant position
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Abuse of economic dependence
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Access to essential facility
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Access to information
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Access to the file
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Administered prices
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Advocacy
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Agency agreement
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Agent
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Agreement (notion)
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Amicus curiae
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Ancillary restraints
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Annulment
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Anticompetitive object or effect
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Anticompetitive practices
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Antitrust
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Applicable law
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Arbitration
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Article 11 letter
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Automotive distribution
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c
Cartel
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Civil fine
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Clearance phase I (merger)
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Clearance phase II (merger)
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Collecting society
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Collective dominance
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Collective redress (class action)
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Comity
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Commission Notice
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Competence
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Competition policy
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Complaint
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Compliance programme
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Compulsory license
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Concerted practices
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Concession
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Concurrent jurisdiction
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Consortium
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Consumers protection
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Consumers’ associations
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Contract
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Control (change)
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Control (notion)
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Cooperation Agreement
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Cooperation between competition authorities
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Coordinated effects
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Copyright
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Corporate group
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Corruption
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Cost-based access
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Criminal sanctions
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Cross subsidisation
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e
ECHR
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Economic analysis
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Economic efficiency
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Economies of scale
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Effect on trade between Member States
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Effective judicial protection
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EFTA Surveillance Authority (ESA) & Court
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Environmental protection
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Essential facility
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European Competition Network (ECN)
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Excessive prices
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Exchanges of information
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Exclusive distribution
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Exclusive purchasing
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Exclusive right (Art. 106 TFEU)
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Exclusivity clause
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Exhaustion
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Extra-territoriality
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l
m
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Parallel imports (parallel trade)
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Passing-on
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Pay-for-delay
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Periodic penalty payment
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Personal data
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Potential competition
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Predatory pricing
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Preliminary ruling (Art. 267 TFUE)
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Price discrimination
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Price-fixing agreement
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Prices
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Principle of effectiveness
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Principle of equal treatment
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Principle of equivalence
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Principle of proportionality
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Private enforcement
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Privatization
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Procedural autonomy
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Professional association
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Public procurement
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Public undertaking
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Referral (merger)
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Refusal to deal
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Regulated prices
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Regulation
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Relevant market
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Remedies (antitrust)
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Remedies (antitrust)
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Request for information
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Resale price maintenance (RPM)
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Resale-below-cost
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Restriction on exportation
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Right against self-incrimination
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Rights of defence
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Rule of reason
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Sector inquiry
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Selective distribution
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Services of general economic interest
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Single branding
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Sole control
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Spill-over effects
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Standard-Essential Patent (SEP)
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State action defense
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State aid (compatibility)
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State aid (existing aid)
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State aid (notification)
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State aid (notion)
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State aid (recovery)
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State aid (tax ruling)
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State aid (unlawful aid)
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State measure
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Substitutability
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Sudden break of established business relationships