Horizontal FDI

Horizontal Foreign Direct Investment (FDI) occurs when a company expands its operations into another country by establishing or acquiring the same type of business it operates in its home country. For example, if a U.S. fast-food chain opens new restaurants in Canada, that's horizontal FDI. This strategy allows companies to tap into new markets, increase their customer base, and take advantage of local resources while maintaining their core business model. Horizontal FDI is often driven by the desire for growth and competitive advantage in global markets.