What Is The HORIZONTAL Foreign Direct Investment?

Foreign Direct Investment or FDI is the investment made by an investor outside the local territory. There are various forms of FDI and one form of FDI is horizontal Foreign Direct Investement. Horizontal FDI is an investment made by a multinational company in different nations. The investment is made for conducting the similar business operations as already operated by the company. For example, if a soft drink manufacturing company makes its plant outside its national borders then it is horizontal FDI. Horizontal FDI results in expansion of the parent company and brings FDI in the other economy.