Which of the Following Is Classified as Horizontal FDI

question 50

Multiple Choice

Which of the following is classified as horizontal FDI?

• A)A U.S.steel­producing firm purchases an iron ore mine in Australia.
• B)A German auto manufacturer constructs an auto assembly plant in Alabama.
• C)Apple establishes a plant in Taiwan to manufacture components for iPhones that are then shipped to China for
• Assembly at its phone assembly plant.
• D)McDonald's buys a Russian meat packing plant that produces ground beef for Big Macs sold at its restaurants
• In Moscow.

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Definitions:

Cost Of Goods Sold

The immediate expenses associated with manufacturing the products a company sells, covering both materials and manpower.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company's balance sheet.

Finished Goods Inventory

Products that have been manufactured and are ready for sale, but have not yet been sold to customers.