Which of the Following Is a Reason for Horizontal FDI

question 56

Multiple Choice

Which of the following is a reason for horizontal FDI?

• A)to increase access to foreign market
• B)to avoid tariffs of the host country
• C)to decrease access to foreign market
• D)to increase access to foreign market and avoid tariffs of the host country

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Definitions:

Basket of Goods

A selection of various goods and services used to track inflation and the cost of living over time.

Balance of Payments

A record of all financial transactions made between consumers, businesses, and the government in one country with others.

Accounting Techniques

Methods or principles employed in managing and reporting financial information and transactions.

Exports Equal Imports

This term refers to a situation in balance of trade where the value of a country's exports equals the value of its imports.