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Which Foreign Direct Investment (FDI) attempts to acquire particular resources at a lower real cost than could be obtained in the home country?

1) Strategic asset-seeking FDI
2) Resource-seeking FDI
3) Market-seeking FDI
4) Efficiency-seeking FDI

1 Answer

3 votes

Final answer:

Efficiency-seeking FDI attempts to acquire resources at a lower cost than in the home country.

Step-by-step explanation:

Foreign Direct Investment (FDI) attempts to acquire particular resources at a lower real cost than could be obtained in the home country through Efficiency-seeking FDI. Efficiency-seeking FDI refers to foreign investment made to access lower production costs, such as cheaper labor or resources, in order to enhance efficiency and reduce production costs. This type of FDI aims to maximize profits by taking advantage of cost advantages in other countries.

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