Foreign Invested Enterprise

A Foreign Invested Enterprise (FIE) refers to a business entity that is established in a country by foreign investors. This can include wholly foreign-owned enterprises or Joint Ventures between foreign and local investors. FIEs are significant in global trade and investment, often bringing in Capital, technology, and expertise.

Examples of Foreign Invested Enterprises include:

• A U.S. tech company setting up a Subsidiary in China.
• A German automobile manufacturer partnering with a local firm in India to produce cars.
• A Japanese retail chain opening stores in Brazil with local investors.

Notable cases:

• Starbucks entering the Chinese market through a joint venture with local partners, significantly expanding its presence in Asia.
• Volkswagen’s investment in a manufacturing plant in Mexico, benefiting from lower production costs and access to the North American market.