Companies often engage in FDI to expand their market reach and access new customer segments in foreign countries.

Portfolio investment involves the purchase of stocks, bonds, and other financial assets in a foreign country, but it does not involve direct control or management of a foreign company.

Outward FDI refers to the investment made by a company in a foreign country, resulting in the outflow of capital from the home country.

While FDI can contribute to increased government revenue through taxes and other fees, it is not a direct benefit to the host country's economy.

FDI externalities refer to the negative consequences of FDI, such as environmental degradation, displacement of local communities, and exploitation of labor.

Favorable tax policies are not a challenge associated with FDI; on the contrary, they can be an incentive for companies to invest in a particular country.

FDI repatriation refers to the transfer of profits earned from FDI back to the home country of the investing company.

Favorable exchange rates are not a direct factor that influences a company's decision to invest in a foreign country.

Acquisition refers to the purchase of a controlling stake in a foreign company, resulting in the acquiring company gaining control over the foreign company's operations.

Acquisition is not a type of FDI that involves a partnership between companies; it refers to the purchase of a controlling stake in a foreign company.

Technology transfer refers to the process of transferring technology, knowledge, and skills from a foreign company to a host country, often through FDI.

Favorable tax policies are not a risk associated with FDI; on the contrary, they can be an incentive for companies to invest in a particular country.

Greenfield investment refers to the process of a company establishing a new operation in a foreign country, typically by building new facilities and infrastructure.

Joint venture is not a type of FDI that involves the purchase of existing assets or operations; it refers to a partnership between two or more companies.

FDI divestment refers to the process of a company selling or transferring its foreign operations or assets to another company or entity.