Vertical FDI (垂直型 FDI chuízhí xíng FDI) is a type of foreign direct investment from a company on business activities in another country that are different but related to the investor’s main business in its home country.
Part 1: Breakdown of Words
- “Vertical” (垂直 chuí zhí) as in “vertical integration” (垂直整合 chuí zhí zhěng hé), “vertical axis” (纵轴 zòng zhóu), or “vertical merger” (纵向合并 zòng xiàng hé bìng).
- “FDI” (foreign direct investment) (外商直接投资 wài shāng zhí jiē tóu zī) as in “FDI stock” (外商直接投资存量 wài shāng zhí jiē tóu zī cún liàng).