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Fdi that is pursued to serve the home market is called____

User Jisson
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Final answer:

FDI designed to serve the home market is termed import-substituting investment. FDI represents a long-term commitment, often requiring management involvement and large-scale capital investment, such as InBev's acquisition of Anheuser-Busch.

Step-by-step explanation:

FDI that is pursued to serve the home market is known as import-substituting investment. Unlike portfolio investment, where an investor may buy less than ten percent of a company and can quickly withdraw the investment, foreign direct investment (FDI) typically involves purchasing at least ten percent of a company abroad and assuming managerial responsibility, thus indicating a long-term commitment. For instance, when InBev purchased Anheuser-Busch, it involved significant planning and investment to accomplish the FDI, with the more rapid process of portfolio investment, such as trading government bonds.

User Fledgling
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