Foreign Direct Investment (FDI) refers to an investment made by a company or individual of one country in business activities or assets located in another country with the objective of establishing a lasting interest and control over the foreign enterprise. Unlike portfolio investment, where investors only purchase financial assets, FDI involves ownership, management participation, and direct control over business operations. It plays an important role in international business by facilitating the transfer of capital, technology, managerial skills, and knowledge across countries. FDI can take different forms, such as establishing a new subsidiary, acquiring an existing foreign company, or forming a joint venture with a local partner. It helps multinational enterprises expand their markets, reduce production costs, access natural resources, and strengthen their global competitiveness. For host countries, FDI brings employment opportunities, infrastructure development, improved technology, and economic growth. International markets can be entered through various modes depending on the company’s objectives, resources, and level of risk it is willing to accept. The major entry modes are: Exporting is one of the simplest and most common methods of entering foreign markets. A company produces goods in its home country and sells them in international markets. It requires less investment and involves lower risk compared to other modes. For example, Indian companies such as Tata Steel and Mahindra export their products to several countries. Licensing allows a foreign company to use the technology, brand name, patent,