Respuesta :
A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country-This statement is true
Explanation:
A foreign direct investment (FDI) can be defined as a company of one nation putting up a physical investment into building a facility (factory) in another country or involves buying an existing Plant in a foreign country.
Examples of foreign direct investments include mergers and acquisitions,
Strategically, FDI can be categorized into three types −
Horizontal − In case of horizontal FDI, the company carries or perform all the same activities abroad as it does at the home country.
For example:- Toyota assembles motor cars in Japan ,India and the UK.
Vertical − In vertical assignments, different types of activities are carried out abroad.
Conglomerate − In this type of investment, the investment is made to acquire an unrelated business abroad. It symbolizes the entry of the company into an altogether different business line.
