INNOVATION AND CREATIVITY
INNOVATION IN ENTREPRENEURSHIP
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Minority interest
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Merger
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Management contracts
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Joint venture
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Detailed explanation-1: -The different types of FDIs are horizontal FDI, vertical FDI, conglomerate FDI and platform FDI.
Detailed explanation-2: -Types of foreign direct investment There are mainly two types of FDI-Horizontal and Vertical, However, two other types of foreign direct investments have emerged-conglomerate and platform FDI. HORIZONTAL FDI: under this type of FDI, a business expands its inland operations to another country.
Detailed explanation-3: -Management contracts are often formed where there is a lack of local skills to run a project. It is an alternative to foreign direct investment as it does not involve as high risk and can yield higher returns for the company.
Detailed explanation-4: -Foreign direct investments are commonly categorized as horizontal, vertical, or conglomerate. With a horizontal FDI, a company establishes the same type of business operation in a foreign country as it operates in its home country.