βοΈ αααααΉαααααΆαα
– ααΆααα·αα·αααααααΆααααΈααααα (FDI) αααα
ααΎααΆααα·αα·ααααααααααΎα‘αΎαααααα»αααα α’αΆααΈααααα α¬αααααΆαα·ααΆαααΈαααααααα½α (ααααααααααΎα) αα
αααααααα½ααααααααα (ααααααααα
αΆαααααα) ααΎααααΈαααααΎαααααααααααα’αΆααΈαααααα
– ααΆααα·αα·αααααααΆααααΈααααα (FDI) ααΊααΆαααααΆααααΆαααααααΆααααααααα·α
αα
αα·ααααα αααααΆαααΆαα½ααααα»αααααΎαααααααα·α
αα
αααααΎαααΆαααΏαααΏααααα»αααααααα
αα
αααα·ααααΆ αα·ααααααΎαα±ααΆαααΆαααΆααα
αααα»αααααααααα
αΆαααααααααααα
– FDI ααααΌαβααΆαβα
αΆααβααααΆααβααΆβααΈβααααααβααΊα Horizontal FDI, Vertical FDI, and Conglomerate FDI α
– αααα»αα αα»αααΆαα
αααΎαααααΎααΆααααααΆαααα»ααα
αααααααΎααααΈααΆαα
αΌααααα»αααΈααααΆαααααΈ αααααΈαααΌαααααΆαα’αα·αα·αα αα·ααααααΎαααααΆααα
αααΌαα
βοΈ ααααααααααΈααΆααα·αα·αααααααΆααααΈααααα (FDI)
ααΆααα·αα·αααααααΆααααΈααααα (FDI) αααα
ααΎααΆααα·αα·ααααααααααΎα‘αΎαααααα»αααα α’αΆααΈααααα α¬αααααΆαα·ααΆαααΈαααααααα½α (ααααααααααΎα) αα
αααααααα½ααααααααα (ααααααααα
αΆαααααα) ααΎααααΈαααααΎαααααααααααα’αΆααΈαααααα ααΆααα·αα·αααααααΆααααΈααααααααααΆαααααααααΉαααΆαααααααααα α¬α₯αααα·αααααΆαααααΆαααααα’ααααα·αα·αααααΎααΆαααααααααα ααααα·ααααα·ααΆα αα·αααααΎαααΆαααααΎααΆααααααα
α
α·αααααααα’αααααΆαα’αΆααΈααααααααααα FDI α’αΆα
ααΆαααααααααααααααααΆ αα½αααΆααααΆααααααΎαααΆααΆααααΈ ααΆααα·αααΆαα αα»αααΆαα αα»ααα
αααα»αα’αΆααΈααααααααααΆαααααΆαα α¬ααΆααα·αα·ααααααα»αααΆααααααΆαααα»ααα½αααααΆααΆαα½αααααΌαααα»ααααα»αα FDI ααΊααΆααΆαα»ααααααααααΆαααααααΆα ααααααααααααα·α
αα
α’ααααααΆαα· αα·αααΎααα½ααΆααΈαααΆαααααΆαααααα»αααΆααααααΈαα’αΆααΈααααααααα

βοΈ ααΆααααααΆααααααΆααα·αα·αααααααΆααααΈααααα (FDI) αα
αααα»αααααααα·α
αα
αααααα
ααΆααα·αα·αααααααΆααααΈααααα (FDI) ααΊααΆαααααΆααααΆαααααααΆααααααααα·α
αα
αα·ααααα αααααΆαααΆαα½ααααα»αααααΎαααααααα·α
αα
αααααΎαααΆαααΏαααΏααααα»αααααααα
αα
αααα·ααααΆ αα·ααααααΎαα±ααΆαααΆαααΆααα
αααα»αααααααααα
αΆαααααααααααα αααααΆααα·αααα ααΆαααααααα±ααα’αΆααΈαααααααΌαααααααΆαα
αΌααα
ααΆααααΈααααΆαααααΈ αααααΎαααααΆααα
αααΌααααααα αα·ααααα»αα±ααααΆαααΆαααααα½ααααααα αα·αααΆαα
αααααααα·ααα
αααα»αααΈααααΆαα ααΎαααΈααα FDI ααα
αΌααα½αα
αααααααααΆαα’αα·ααααα αααααΆαα
ααΆαααααααα αααα»αα±ααααΆαααααΆααα
αααΌαααααααααΆαα·ααΆα αα·ααααα»αα±ααααΆαααααΆααααααα’ααααα’ααααααΆαα· ααααΌα
ααΆααΆαα’αα·ααααααααααα·α
αα
ααΎααααααα
βοΈ αααααααα FDI
FDI ααααΌαβααΆαβα
αΆααβααααΆααβααΆβααΈβααααααβααΊα Horizontal FDI, Vertical FDI, and Conglomerate FDI α ααΆααααααβαααβααΆβααΆαβααααααβααααααβαααααααααα FDI βααΈαα½ααα
1. Horizontal FDI: αα
αααα»α Horizontal FDI αααα»αα αα»ααα½ααα·αα·ααααα
ααααααααα»ααα·αααα§ααααΆα αααα α¬ααααΎαααΆαααα·αααααααΌα
ααααΆαα
ααΉαααααα·ααααα·ααΆααααααΆαααααΆααα α ααα»ααα
ααααααΊααΎααααΈαααααΈαααΈααααΆα ααα½αααΆαα’αα·αα·ααααααΈ αα·ααααααΎαα
ααααααΈααααΆαα αααααααα FDI αααα
αααΎαααααΆαααααααααΉαααΆααα½ααααα
αΌαααααΆ ααΆααα·ααα α¬ααΆααααααΎααααα»αα αα»ααα»αααααααααααααααΈαααα
αΌααα½ααααα»ααααααααΆαααααααααΉααααα»αα αα»αααα
2. Vertical FDI: Vertical FDI ααΎαα‘αΎααα
αααααααααα»αα αα»ααα·αα·ααααααα»αααααΆααααΆαααααααααααΆααααααΎαααΆαααα·ααα
αααααα αααα’αΆα
ααααΌαααΆααααα
ααααΆααΈαααααααααΊα
– Backward Vertical FDI: αααα»αααααΈααα αααα»αα αα»ααα½ααα·αα·αααααΎαααααααΆααααααΆαα
αααααα
αααα»αααααΎαααΆαααα·ααααα ααΌα
ααΆααΆαααΆαααααααα»ααΆαα»ααΎα α¬ααΆαααα·αααααΏααααααΆααα ααααα½αααΆααΆαααααααα
ααααΆααααααααααααα±ααααΆααααα·αααΆαα
– Forward Vertical FDI: αααα»αααααΈααα αααα»αα αα»ααα½ααα·αα·ααααααα»ααααααααΆαααΌα
ααΆααΆαα
ααα
αΆα ααΈααααΆα α¬ααΆααααααΆα ααΎααααΈααα½αααΆαααΆααααααααααααΎααΆαα
ααα
αΆα αα·αααΆααααααα·ααααααααααα½αα
3. Conglomerate FDI: Conglomerate FDI αααααααΌαααΆαααααααΆααααΆααΆ FDI α αααα»α ααΊααΆαααααααααΉααααα»αα αα»αααααα·αα·ααααααα»αα’αΆααΈααααααααααααααα·αααΆαααααα ααΉααααααααΆαααααΌα α¬α§ααααΆα αααααααααααα½αα ααΆααα·αα·ααααααααααααα ααΆααΌαα ααΊααααΎα‘αΎαααΎααααΈαααααΈαααααααααααααααα»αα αα»α ααΆαααααααα αΆαα·ααα α¬ααΆαααα’αααααααααααααΈα±ααΆααα·αα·αααααααΈααα αααα»ααα·ααα α¬ααΈααααΆαααααααααααΆα
βοΈ α ααα»α’αααΈααΆαααΆαααα»αα αα»αααΆαα
αααΎαααααΎααΆααα·αα·ααααα
α―ααααα?
αααα»αα αα»αααΆαα
αααΎαααααΎααΆααααααΆαααα»ααα
αααααααΎααααΈααΆαα
αΌααααα»αααΈααααΆαααααΈ αααααΈαααΌαααααΆαα’αα·αα·αα αα·ααααααΎαααααΆααα
αααΌαα ααΆααααααΆαααααΎαα·αα·αααααααααα·ααααα·ααΆααααααα½αααααΆα’ααααααΆαα· α’αΆα
αα½αααΆαααααααα αΆαα·ααααααααΆααααααΉαααΆααααααααα½αααΈααααΆα αα·αααα½αααΆαααααΆα αα·ααα
αα
αααα·ααααΆααααΆααααααα ααΎαααΈααα ααΆααα·αα·αααααΆα’ααααααΆαα·α’αΆα
αα½αααΆαααααααααΌαααααααΎαααα·ααααα αααα’αΆα
ααααΎα±ααααΆαααααα½αααααααααΆαααΆααααααΎαα‘αΎααα·αα
| English Version |
βοΈ Key takeaway
– Foreign Direct Investment (FDI) refers to the investment made by individuals, businesses, or governments from one country (the home country) into business interests located in another country (the host country).
– Foreign Direct Investment (FDI) is pivotal for global economies as it fuels economic growth, enhances technological advancement, and creates job opportunities in host countries
– FDI can indeed be categorized into three main types: horizontal, vertical, and conglomerate.
– Companies invest abroad to access new markets, expand their customer base, and increase revenue.
βοΈ Understanding about Foreign Direct Investment
Foreign Direct Investment (FDI) refers to the investment made by individuals, businesses, or governments from one country (the home country) into business interests located in another country (the host country). This investment involves a significant degree of control or influence by the investor over the management, operations, and decision-making processes of the foreign business entity. FDI can take various forms, including the establishment of new subsidiaries or branches, acquisition of equity stakes in existing businesses, or investment in joint ventures with local partners. FDI is a critical component of international economic integration and plays a vital role in global business expansion.

βοΈ Importance of FDI in the global economy
Foreign Direct Investment (FDI) is pivotal for global economies as it fuels economic growth, enhances technological advancement, and creates job opportunities in host countries. It provides businesses with access to new markets, diversifies revenue streams, and stimulates competition and innovation. Additionally, FDI contributes to infrastructure development, bolsters government revenue, and fosters international interconnectedness, promoting economic development on a global scale.
βοΈ Types of FDI
FDI can indeed be categorized into three main types: horizontal, vertical, and conglomerate. Here’s a brief explanation of each:
1. Horizontal FDI: In horizontal FDI, a company invests in a foreign country in the same industry or production process as its existing operations. The primary motive is to expand market reach, gain access to new customers, and increase market share. This type of FDI often involves mergers, acquisitions, or the establishment of new subsidiaries that engage in similar activities as the parent company.
2. Vertical FDI: Vertical FDI occurs when a company invests in different stages of the production process in foreign countries. This can be divided into two subcategories:
– Backward Vertical FDI: In this case, a company invests in activities that are upstream in the production process, such as raw material extraction or component manufacturing. This helps secure a stable supply chain.
– Forward Vertical FDI: Here, a company invests in downstream activities, such as distribution, marketing, or retail, to gain control over the distribution and sale of its products.
3. Conglomerate FDI: Conglomerate FDI, also known as diversified FDI, involves a company investing in foreign businesses that are unrelated to its core activities or industry. The motive for conglomerate FDI is often to diversify the company’s portfolio, reduce risk, or take advantage of new investment opportunities in different sectors or markets.
βοΈ Why do companies invest abroad?
Companies invest abroad to access new markets, expand their customer base, and increase revenue. By diversifying their operations internationally, they reduce risks associated with market fluctuations and gain access to valuable resources and technologies. Additionally, international investments can lower production costs, improve competitiveness, and foster strategic partnerships, ultimately supporting long-term growth and profitability.