Define the term foreign direct investment (FDI) indicated in bold in the text (Text B, paragraph 1).

Paragraph 1: Kestria is a low-income country of 18 million people. Copper provides 70% of its export revenue. When world demand for copper fell in Year 4, the world price of copper dropped by 30%, and the tax revenue that the government collects from mining fell with it.

Paragraph 2: Average incomes have hardly changed in five years (Table 1). The government's development plan aims to reduce the country's dependence on copper and to raise living standards, especially in rural areas, where most people work on small farms.

Paragraph 1: The centre of the plan is to attract foreign direct investment (FDI). Foreign clothing firms that build factories in a new export zone beside the main port pay no tax on their profits for ten years. Inflows of FDI have risen from K$0.4 billion in Year 1 to K$1.6 billion in Year 5, and the zone now employs 60,000 workers, most of them young women from rural areas.

Paragraph 2: The plan also includes spending on infrastructure. Rural roads and electricity lines are being built with a loan of K$2 billion from the World Bank. Primary schooling has been free since Year 2.

Paragraph 1: Critics point out that the foreign firms import most of their cloth and machinery, employ foreign managers and send their profits home. Because of the tax exemption, the government collects little revenue from the zone, while payments on its foreign debt now take 22% of government revenue.

Paragraph 2: Inequality has widened (Table 2). The capital city and the port have boomed, but in rural areas many families remain in a poverty cycle: their incomes are too low for them to save or to keep their children in school after the age of eleven. Only 41% of the population has access to electricity.