Abstract
Foreign direct investment (FDI) occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country. According to the U.S. Department of Commerce, FDI occurs whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity. Once a firm undertakes FDI, it becomes a multinational enterprise. An example of FDI is given in the closing case, that's the case of Starbucks expansion.