FDI Vertical Integration Is Backward

question 43

Multiple Choice

FDI vertical integration is backward

• A)when FDI involves an industry abroad that produces inputs for MNCs.
• B)when FDI involves an industry abroad that sells the MNC's outputs.
• C)none of the options
• D)when FDI involves an industry abroad that produces inputs for MNCs,as well as when FDI involves an industry abroad that sells the MNC's outputs.

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Definitions:

Bond Issue

The process by which a government, corporation, or other entity raises funds by issuing bonds to investors.

Current Liabilities

Short-term financial obligations that are due within one fiscal year or the operating cycle, whichever is longer.

Refinancing

The process of replacing an existing loan with a new loan, typically with better terms, to improve financial outcomes.

Long-Term Investment

An asset purchased with the goal of holding the investment for a period typically exceeding one year, often to generate revenue over time or appreciate in value.