Discuss the two main forms of FDI.
– Discuss the reasons for the growth in FDI over the last 30 years.
Expert Answer
The two forms of FDI are Horizontal and Vertical FDI.
Vertical FDI: It is an investment that a company makes in a foreign country to get the required support to run the business in the native country:
Example: Indian automobile company investing in a company in Germany to procure the required raw materials and spare parts.
Horizontal FDI: It is an investment made by the company in a foreign country in the same domain with an aim of
OR
PayPal Gateway not configured
OR
PayPal Gateway not configured