4.1.2 FDI Flashcards
1
Q
Why might a business do FDI?
A
- Could make a profit if it invests in a new location.
- Gain knowledge of the market.
- Avoid barriers.
2
Q
How do countries benefit from FDI?
A
- Increased economic growth due to the flow of money.
- Job opportunities.
- Access knowledge from foreign expertise.
- Increases exports.
3
Q
What is vertical FDI?
A
Where a business acquires a supplier.
4
Q
What is horizontal FDI?
A
Where a business acquires a similar business to its own.
