Outward Direct Investment (ODI):

·  An outward direct investment (ODI) is a business strategy in which a domestic firm expands its operations to a foreign country.

·  ODI can take many different forms depending on the company. For example, some companies will make a green field investment, which is when a parent company creates a subsidiary in a foreign country.

·   A merger or acquisition can also occur in a foreign country (and so may be considered an outward direct investment).

·   Finally, a company may decide to expand an existing foreign facility as part of an ODI strategy. Employing ODI is a natural progression for firms if their domestic markets become saturated and better business opportunities are available abroad.