Posted in Finance, Accounting and Economics Terms, Total Reads: 685
Definition: Foreign Invested Enterprise (FIE)
Foreign Invested Enterprise (FIE) are regulations under which a company can do business in foreign economies. The avenues in which the company can establish to make profits are restricted by government regulations the motive for which is to protect domestic companies from perishing at the hands of foreign players. China, for example, is a highly regulated economy for Foreign Invested Enterprises.
Example: FDI falls under the category of Foreign Invested Enterprise setups. As of now, the Government of India has allowed FDI in the following sectors –single brand retailing, multi-brand retailing, airlines, certain broadcasting sectors, insurance and power. This is a clear example of the regulations and restrictions imposed on FIEs by local governments.