Hello Sir Please Can You Tell Me The Various Types Of FDI? (types Of Foreign Direct Investment)
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Foreign Direct Investment refers to a special investment from one country to another focusing on construction of a fixed asset for another company. It is also used to refer to investments that have a lasting interest in the company.
Following are the different types of FDI:
- Outward-Bound FDI: Is a kind of investment that is backed by government against all kinds of risks. It features tax incentives and risk coverage.
- Inward -bound FDI: Is another kind of investment. It is affected by interest loans, tax breaks, grants, subsidies etc.
- Vertical FDI:
- Horizontal FDI: Is then investment by a multinational company in similar business in another country.
- Vertical FDI: When a multinational owns some shares of a foreign investment.
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