Foreign direct investment typically involves what type of management?

Foreign direct investment (FDI) generally involves the direct management of the acquired foreign assets by the investing company. When a firm engages in FDI, it not only invests capital in a foreign country's business but often takes an active role in managing that business or operation. This involvement can include overseeing operations, making strategic decisions, and integrating the foreign subsidiary into the overall corporate structure. By directly managing these assets, the investing firm can maintain control over operations, ensure quality and efficiency, and align the foreign investment with its broader business objectives, which is a critical component of maximizing returns on investment. This direct approach distinguishes FDI from other forms of investment, such as portfolio investment, where the investor does not engage in the management of the assets.