In a short essay, explain the difference between vertical FDI and horizontal FDI. To illustrate your explanation, provide examples of firms that successfully utilize each type of FDI.
What will be an ideal response?
Question 2
During her presentation, Jessica describes how two automakers joined forces and formed a separate firm by pooling their assets. Which of the following topics was most likely assigned to Group A?
A) equity joint venture
B) acquisition
C) greenfield investment
D) vertical integration
Question 3
During his presentation, Manu describes how a large U.S. retailer entered the Mexican market by purchasing the stores and assets of a Mexican retailer. Which of the following topics was most likely assigned to Group B?
A) merger
B) equity participation
C) acquisition
D) collaborative venture
Question 4
On which of the following levels of the international monetary and financial systems pyramid are commercial banks categorized?
A) national government level
B) national infrastructures level
C) international organization level
D) firm level
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