Ecn 600 Module 13 Discussion Fdi In Saudi Arabia

ECN 600 Module 13 Discussion: FDI in Saudi ArabiaIn today’s business environment, many organizations choose to explore markets outside their national territories. They also enter new markets by joint ventures, export, or Foreign Direct Investment, FDI. The latter is where an organization makes investments to get long-term interests in or effective controls over businesses operating outside of the investors’ economy (Sokang, 2018). FDI has been among the fastest growing economic activities across the globe after international commerce. Over the past seven decades and as the world’s largest oil exporter and producer, Saudi Arabia has lured in substantial amounts of FDI. The increase attributes to the outcome of eased laws in the year 2000 about international investment to diversify the economy.FDIs can be vertical, conglomerate, or horizontal. Vertical FDI involves investments made within the supply chain but not directly in the same industry, while conglomerate involves investments made in completely distinct industries (Boyce, 2021). Horizontal FDI involves investment of funds internationally in the same industry. Saudi Arabia has vertical and conglomerate FDIs. It reflects the Kingdom’s production facilities international ownership, and invests in agriculture, production services, among other sectors.The motives for FDI include investing internationally to get specific resources at