Investment in Productive Assets and Participation in Management as Stakeholders

Investment in productive assets and participation in management as stakeholders in business enterprises is known as Foreign Direct Investment (FDI).

Foreign Direct Investment (FDI)
FDI refers to the investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets in the other country.

Key Features of FDI:
1. Ownership and Control: FDI involves a higher level of ownership and control over the business operations in comparison to other forms of investment.
2. Long-term Investment: FDI is a long-term investment as it involves establishing a lasting interest in the foreign market.
3. Technology Transfer: FDI often involves the transfer of technology, skills, and know-how from the investing company to the host country.
4. Participation in Management: FDI allows the investor to actively participate in the management of the business enterprise in the host country.

Benefits of FDI:
1. Economic Growth: FDI can contribute to economic growth by creating jobs, increasing productivity, and promoting innovation.
2. Transfer of Skills and Technology: FDI can facilitate the transfer of skills, knowledge, and technology to the host country.
3. Improving Infrastructure: FDI can lead to improvements in infrastructure and the overall business environment in the host country.
4. Access to Global Markets: FDI can provide access to global markets for the host country's goods and services.

In conclusion, FDI plays a crucial role in promoting economic development, fostering international business relations, and enhancing the competitiveness of the host country's economy.