Question

Write a short note on advantages of foreign direct investment and types of foreign direct investment

Answer 1

the advantage of MNCs when they tie up with small local companies

MNCs sometimes set up production jointly with some of the local companies of these companies the benefits of the local company of such jointly production is twofold

1) MNCs can provide money for additional investment such as buying new machines for faster production
2) MNCs might bring with them the latest technology for production

types of foreign direct investment

1) horizontal
2) vertical