School of Economics | Foreign direct investments
post-template-default,single,single-post,postid-5021,single-format-standard,ajax_fade,page_not_loaded,,qode-title-hidden,qode_grid_1300,qode-content-sidebar-responsive,qode-theme-ver-11.1,qode-theme-bridge,wpb-js-composer js-comp-ver-5.1.1,vc_responsive

Foreign direct investments

Foreign direct investments are commonly categorized as being horizontal, vertical or
conglomerate in nature.

A horizontal direct investment : In this type of investment , investor establish the same type of business operation in the foreign countries as it operates in its home country.
A vertical direct investment: A vertical investment is one in which different but related business activities from the investor’s main business are established or acquired in a foreign country.

A conglomerate type of foreign direct investment is one where a company or individual makesa foreign investment in a business that is unrelated to its existing business in its home country.

No Comments

Post A Comment