Which of the following situations does not refer to horizontal FDI? A U.S. auto
ID: 1148267 • Letter: W
Question
Which of the following situations does not refer to horizontal FDI?
A U.S. auto maker decides to open one new factory in the U.S.A. to produce motorcycles.
VW' decision to establish its own dealer network in the U.S.A.
A U.S. auto maker decides to open an assembly plant in Mexico to produce the same cars that produces in the U.S.A.
A Japanese auto maker decides to open an assembly plant in Ohio, U.S.A. to produce the same cars that produces in the Japan.
(a) and (b).
A U.S. auto maker decides to open one new factory in the U.S.A. to produce motorcycles.
VW' decision to establish its own dealer network in the U.S.A.
A U.S. auto maker decides to open an assembly plant in Mexico to produce the same cars that produces in the U.S.A.
A Japanese auto maker decides to open an assembly plant in Ohio, U.S.A. to produce the same cars that produces in the Japan.
(a) and (b).
Explanation / Answer
Solution: a) and (b).
Explanation: In option a and b, both business are opening in U.S. and horizontal FDI occurs when FDI invests in the same business abroad that it operates domestically