General Studies · International Business
'Horizontal FDI' means:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1When a firm invests in a foreign country in a similar production activity as carried out in the home country, exploiting its competitive advantage in the host country.✓
- 2When a foreign firm takes control over domestic assets.
- 3Direct investment made overseas with the aim to provide inputs for the firm's production processes in the home country.
- 4Direct investment in industries abroad so as to either provide inputs for the firm's domestic operations or sell its domestic output overseas.
Correct answer
When a firm invests in a foreign country in a similar production activity as carried out in the home country, exploiting its competitive advantage in the host country.
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