Which of the Following Is NOT Classified as Horizontal FDI

question 25

Multiple Choice

Which of the following is NOT classified as horizontal FDI?

• A) NUCOR, a U.S. steel manufacturer, purchases an iron ore mine in Australia.
• B) BMW, a German auto manufacturer, constructs an auto assembly plant in South Carolina.
• C) Burger King, an American fast food chain, buys Canadian fast-food chain Tim Horton's.
• D) General Motors, an American auto manufacturer, constructs an auto assembly plant in Toronto, Canada.

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Definitions:

Utilization

In finance, utilization can refer to the degree to which a company’s resources or assets are being used efficiently to generate revenues or profits.

Acquiring Firm's Assets

Refers to the assets that a company takes control of as a result of purchasing or merging with another business, contributing to its overall asset base.

Friendly Mergers

Mergers that are agreed upon and pursued by both the acquiring and the target companies, often with mutual benefits in mind.

Unfriendly Tender Offers

Acquisition proposals made by one company to buy another company's shares directly from the shareholders, often without the approval of the target company's management.