An FDI project that enters a country for the purpose of constructing an assembly facility for products that are to be re-exported is an example of ________.

Question

Quizplus · Accepted Answer

Production seeking behavior refers to FDI projects that aim to set up production facilities in a foreign country for the purpose of exporting finished products. In this case, the assembly facility is set up with the intention of exporting the products, which aligns with production seeking behavior. Resource seeking behavior refers to FDI projects that aim to acquire natural resources or other inputs at a lower cost, while market seeking behavior refers to FDI projects that aim to tap into a new market in a foreign country. Labor seeking behavior refers to FDI projects that aim to take advantage of cheaper labor costs in a foreign country.

An FDI Project That Enters a Country for the Purpose