What type of FDI is primarily driven by a large domestic market, rather than serving as an export base?

💡 Explanation:

Market-seeking Foreign Direct Investment (FDI) is capital inflow motivated by serving the host country's local consumer demand, often in protected markets. This contrasts with efficiency-seeking (or export-oriented) FDI, which leverages the host country's advantages (e.g., low labour costs, strategic location) to integrate into global value chains and export products. Market-seeking FDI can result in higher profit and royalty remittances, potentially draining foreign reserves in the long term.