Lesson Plan

• Describe the definition and key elements of foreign direct investment.
• Distinguish FDI from portfolio investment based on ownership, control, and purpose.
• Explain the main motivations for multinational enterprises to undertake FDI.
• Analyse the economic impacts of FDI on host and source countries.
• Apply the balance‑of‑payments identity to illustrate how FDI inflows affect current and capital accounts.

• Projector and screen
• Whiteboard and markers
• Printed handouts of the FDI definition and comparison table
• PowerPoint slides with diagrams
• Worksheet with case‑study questions
• Calculator (optional)

Start with a quick poll: Which global brands are visible in your neighbourhood? Review students’ prior knowledge of trade and investment from earlier lessons. Explain that today they will identify what makes an investment “direct” and how it differs from portfolio flows, with success demonstrated by completing a comparison chart.

1. Do‑now (5') – Students list examples of multinational companies and discuss where they operate; teacher records responses.
2. Mini‑lecture (10') – Present the definition of FDI, its key elements, and forms (greenfield, brownfield, joint venture) using slides.
3. Interactive comparison (8') – In pairs, students complete a Venn diagram contrasting FDI with portfolio investment and share findings.
4. Motivations & impacts (12') – Group analysis of an MNE case study to identify motivations and discuss economic impacts (technology transfer, employment, balance of payments).
5. Formula application (5') – Short exercise linking FDI inflows to the current‑account identity.
6. Check for understanding (5') – Exit ticket: define FDI in one sentence and note one key impact.

Recap the definition of FDI and its distinguishing features, highlighting the economic effects discussed. Collect exit tickets to gauge understanding. Assign a brief homework essay comparing the advantages of FDI versus portfolio investment for a developing host country.