Picnia Corp.,a leading automobile manufacturing company,assembles its cars in Deltaland,but the components are manufactured in Ristasia.In this scenario,Picnia Corp.has engaged in:

Question

Quizplus · Accepted Answer

Upstream vertical FDI occurs when a company invests in a foreign country to produce components or inputs that are then used in its home country or another location for final assembly. In this case, Picnia Corp. manufactures components in Ristasia and assembles cars in Deltaland.