Question

Renata's US-based lifestyle company decides to invest in a company based in France that specializes in health and wellness. This would be an example of

Answer 1

People often make investments the health and wellness sector. This would be an example of foreign direct investment.

What is a foreign direct investment (FDI)?

This is known as a purchase of an interest that a firm is involved in. Here, the company by a company or an investor are found outside its borders.

The 3 types of FDI are;

1. Horizontal FDI
2. Vertical FDI
3. Conglomerate FDI

It is simply a business decision to get or buy a good amount of stake in a foreign business as in the case with Reneta.

Learn more about foreign direct investment from

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