A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country. A. TRUEB. FALSE

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country-This statement is true

Explanation:

A foreign direct investment (FDI)  can be defined as  a company of one nation putting up a physical investment into building a facility (factory) in another country or involves buying an existing Plant in a foreign country.

Examples of foreign direct investments include mergers and acquisitions,

Strategically, FDI can be categorized into  three types −

Horizontal − In case of horizontal FDI, the company carries or perform  all the same activities abroad as it does at the home country.

For example:- Toyota assembles motor cars in Japan ,India and the UK.

Vertical − In vertical assignments, different types of activities are carried out abroad.

Conglomerate − In this type of investment, the investment is made to acquire an unrelated business abroad. It symbolizes the entry of the company into an altogether different business line.

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