A multiplant firm expands by duplicating the same activities in multiple countries. Which type of foreign direct investment (FDI) does this describe?

Brownfield FDI refers to investments made in existing facilities or operations, often involving the purchase or lease of a pre-existing facility to enhance or modify it. This type of investment does not involve duplicating the same activities in multiple locations but rather upgrading or repurposing an already operational site.

Vertical FDI occurs when a firm invests in different stages of production processes, either by acquiring suppliers (backward vertical integration) or distributors (forward vertical integration). This investment type focuses on enhancing the supply chain rather than duplicating the same activities across different countries, distinguishing it from horizontal FDI.

Greenfield FDI involves establishing new facilities from the ground up in a foreign country. While it can involve replicating operations, it is characterized by starting new ventures rather than duplicating existing activities, which is what horizontal FDI specifically entails.