Most foreign direct investment among industrialized countries is:

Question

Quizplus · Accepted Answer

Most foreign direct investment among industrialized countries is horizontal FDI, which is when a company establishes subsidiaries or acquires local companies in foreign markets that produce the same products or services as the parent company. This type of investment is driven by the desire to gain access to new markets and customers, as well as to reduce production costs through economies of scale and scope. Vertical FDI involves investment in different stages of the value chain, industrial FDI refers to investment in specific industries, and reverse-vertical FDI involves investment by foreign suppliers in their customers' markets.

Most Foreign Direct Investment Among Industrialized Countries Is