Definition: Vertical FDI

Foreign direct investment

A company "slices" its production chain by allocating different parts to those countries in which production costs are lower. Progress achieved in recent years in telecommunications and data management has enabled firms to allocate their production processes more easily through so-called supply chain management.
Source:
Eurostat, "European Union foreign direct investment yearbook 2007 - Data 2001 - 2005", Office for Official Publications of the European Communities, Luxembourg, 2007
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