Conglomerate FDI

Conglomerate Foreign Direct Investment (FDI) occurs when a company invests in a foreign country by acquiring or establishing businesses that are unrelated to its core operations. This means the investing company diversifies its portfolio by entering into different industries in a new market. For instance, a technology firm might invest in a foreign food processing company. This strategy aims to manage risk and explore new opportunities for growth while gaining a foothold in diverse markets abroad.