Whenever Foreign Direct Investment Occurs Between

question 49

Multiple Choice

Whenever foreign direct investment occurs between
Industrial countries, it is referred to as:

• A)egalitarian FDI.
• B)balanced FDI.
• C)horizontal FDI.
• D)vertical FDI.

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Definitions:

Comparative Advantage

The concept that a country, individual, or company produces a good or service at a lower opportunity cost than their competitors.

Trade

The exchange of goods or services between parties, which could be within an economy or between economies.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.