Which type of FDI occurs when the MNE enters a foreign country to produce the same product(s) produced at home (or offer the same service as it does at home)?
A) horizontal FDI
B) vertical FDI
C) conglomerate FDI
D) none of the above

Question

Quizplus · Accepted Answer

Horizontal FDI occurs when a company invests in a foreign country to produce the same products or offer the same services as it does at home. It involves a replication of the company's business model in the foreign market, often to take advantage of economies of scale or new markets.

Which Type of FDI Occurs When the MNE Enters a Foreign