Which Type of FDI Occurs When the MNE Enters a Foreign

question 36

Multiple Choice

Which type of FDI occurs when the MNE enters a foreign country to produce the same product(s) produced at home (or offer the same service as it does at home) ?

• A) horizontal FDI
• B) vertical FDI
• C) conglomerate FDI
• D) none of the above

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Definitions:

Ego Depletion

A state where individuals have a diminished capacity to exert self-control or engage in cognitive tasks, due to the depletion of a limited pool of mental resources.

Impulsivity

The tendency to act on whims and desires without considering the consequences or the appropriateness of the action.

Aggression

Behavior intended to harm or injure another being, either physically or psychologically.

Domestic Violence

A pattern of abusive behavior in any relationship that is used by one partner to gain or maintain control over another intimate partner.