Scenario: Global Manufacturing, Inc. (GMI)

question 121

Multiple Choice

Scenario: Global Manufacturing, Inc. (GMI)
GMI is a fast-growing U.S. company that wants a production system that makes each of its product's two components in the location where the cost of production is lowest. The components will then be taken to maquiladoras for final assembly. GMI purchased an existing company in Brazil to produce component A and built a subsidiary in Thailand to produce component B.
-GMI's investments are considered ________.

• A) foreign direct investment
• B) portfolio investment
• C) merger
• D) horizontal integration

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Definitions:

Scapula

A flat, triangular bone located in the upper back, part of the shoulder girdle that provides attachment for several muscles.

Anterior Crest

The forward edge or prominent front border of a bone, often referring to the shinbone.

Tibia

A large bone in the lower leg, known as the shinbone, that bears most of the body's weight.