Which of the Following Is an Example of Horizontal FDI

question 85

Multiple Choice

Which of the following is an example of horizontal FDI?

• A)Ford Motor Company acquires the British firm Jaguar.
• B)Lenovo, a Chinese company, acquires IBM's personal computing business.
• C)The Venezuelan government acquires the Venezuelan operations of BP, a British petroleum firm.
• D)General Motors Corporation builds a plant in China to supply Buicks to the Chinese market.

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Definitions:

Spontaneous Financing

Financing that naturally increases as a firm's operating levels increase, typically through trade credits and accruals.

Five Year Bonds

Debt securities issued with a maturity of five years, typically paying interest semi-annually.

Factor Receivables

The financial practice of selling accounts receivable to a third party at a discount to immediately generate cash.

Uncollectible Accounts

Accounts receivable that are recognized as not being collectible, representing losses to the company.