General Studies · International Business
What is the meaning of 'Horizontal FDI' (Foreign Direct Investment)?
- 1When a firm invests in a foreign country in a similar production activity as carried out in its home country.✓
- 2When a foreign firm takes control over domestic physical infrastructure only.
- 3Direct investment made overseas with the aim to provide inputs for the firm's production processes in the home country.
- 4Direct investment in downstream industries abroad so as to sell domestic output overseas exclusively.
Correct answer
When a firm invests in a foreign country in a similar production activity as carried out in its home country.
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