a-4, b-3, c-2, d-1
a-1, b-4, c-2, d-3
a-3, b-4, c-2, d-1
a-3, b-2, c-1, d-4
Answer is Right!
Answer is Wrong!
The correct answer is: D. a-3, b-2, c-1, d-4
Here is a brief explanation of each option:
- a. Direct investment overseas aimed at manufacturing products not manufactured by the firm in the home country. This is an example of horizontal FDI. Horizontal FDI occurs when a firm invests in a foreign country to produce the same products that it produces in its home country. This type of FDI is often motivated by the desire to access new markets or to reduce costs.
- b. Direct investment in a foreign country aimed to sell the output of the firm’s domestic production. This is an example of vertical FDI. Vertical FDI occurs when a firm invests in a foreign country to produce inputs that are used in its production process in its home country. This type of FDI is often motivated by the desire to reduce costs or to improve quality control.
- c. Direct investment overseas aimed at providing inputs for the firms production process in the home country. This is also an example of vertical FDI.
- d. Foreign firms investing overseas and taking control over foreign assets. This is an example of foreign direct investment (FDI). FDI occurs when a firm invests in a foreign country to establish a subsidiary or branch. This type of investment can take many forms, including the acquisition of an existing company, the construction of a new plant, or the purchase of land or other assets.
I hope this explanation is helpful!