A foreign direct investment (FDI) is an investment in which an individual or business owns 10% or more of the voting stock (a controlling interest) of a company in a foreign country. If an investor owns less than 10% of the company the International Monetary Fund (IMF) considers the investment a part of the individual’s stock portfolio and not an FDI.
In Ohio, as in other states, foreign direct investment (FDI) is subject to both federal regulations and state statutes. The federal government primarily oversees FDI through agencies such as the Committee on Foreign Investment in the United States (CFIUS), which reviews transactions that could result in control of a U.S. business by a foreign entity to determine the effect on national security. For an investment to be considered an FDI under the guidelines of the International Monetary Fund (IMF), an individual or business must own at least 10% of the voting stock of a company in the foreign country, granting them a controlling interest. Investments below this threshold are generally treated as portfolio investments rather than FDIs. While Ohio does not have specific statutes that redefine or alter the IMF's definition of FDI, the state does provide resources and support through entities like JobsOhio to facilitate and encourage foreign investment, ensuring compliance with federal laws and regulations.