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Foreign Direct Investment (FDI) involves a company from one Economy investing in another Economy, typically by establishing a subsidiary or acquiring an existing business. This provides the investor with direct control over the foreign operations. In contrast, Foreign Portfolio Investment (FPI) involves investing in foreign securities like stocks and bonds, without gaining direct ownership or control over the foreign company. While FDI is often seen as a long-term strategy for expanding business operations, FPI is often a shorter-term investment strategy aimed at financial returns.