Basic objective of this lecture is to presentation on Foreign Direct Investment. Here briefly explain Foreign Direct Investment policy, process and importance. Major focus are why is FDI increasing in the world economy and why do firms imitate competitors with FDI strategies. Here also explain why do firms often prefer FDI to other market entry strategies and why are certain locations favored for FDI. Finally discuss on how does political ideology affect government FDI policy and what are key Foreign Direct Investment related costs and benefits for receiving and source countries.