If Toyota opens up a manufacturing plant in Tennessee, and hires 400 workers, that's insourcing.
But that's NOT Foreign Direct Investment, because Toyota is not taking an ownership position in an American company.
You are wrong.
It IS Foreign Direct Investment.
FDI includes corporate activities such as businesses building plants or subsidiaries in foreign countries, and buying controlling stakes or shares in foreign companies. It doesn't include short term capital flows, such as the portfolio investments of "emerging market" mutual funds.
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