Which Type of Multinational Diversification Occurs When the Parent Firm

question 83

Multiple Choice

Which type of multinational diversification occurs when the parent firm establishes foreign subsidiaries to produce intermediate goods going into the production of finished goods?

• A) forward vertical integration
• B) backward vertical integration
• C) forward horizontal integration
• D) backward horizontal integration

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Definitions:

Crop Destroyed

A situation where agricultural produce is damaged or obliterated due to factors like natural disasters, pests, or disease.

Excess Supply

A condition in the market where the quantity of a good or service supplied is greater than the quantity demanded at the current price.

Price Of Burritos

The amount of money required to purchase one unit of a burrito, determined by factors such as ingredients, preparation costs, and market demand.

Demand Shifts

Changes in consumer desire that lead to an increase or decrease in the quantity demanded at every price point.