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Understanding Foreign Direct Investment (FDI) Quiz

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1. What is a foreign direct investment (FDI)?

2. What does an increase in foreign direct investment often indicate?

3. What can be a possible disadvantage of foreign direct investment?

4. What role does foreign direct investment play in developing countries?

5. What is the type of foreign direct investment when a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up?

6. What is the common form of foreign direct investment where the foreign investor acquires an existing company in the target overseas market?

7. What is the main advantage of foreign direct investment to the host country's economy?

8. What is a Horizontal Foreign Direct Investment?

9. What is Vertical Foreign Direct Investment?

10. Which of the following organizations collects and publishes FDI data of member countries?