If FDI abroad is to manufacture products not manufactured by the parent company at home, it is called
A) vertical FDI.
B) conglomerate FDI.
C) horizontal FDI.
D) none of the above.

Question

Quizplus · Accepted Answer

Conglomerate FDI occurs when a company invests in a foreign business that is unrelated to its core business activities, essentially diversifying its operations into new areas. This is the case when the FDI is to manufacture products not manufactured by the parent company at home.

If FDI Abroad Is to Manufacture Products Not Manufactured by the Parent