Which of the Following Is an Example of Reverse-Vertical FDI

question 51

Multiple Choice

Which of the following is an example of reverse-vertical FDI?

• A) Geely-a Chinese automaker-buys Volvo from Ford Motor Company.
• B) Toyota-a Japanese automaker-constructs a truck manufacturing plant in Texas.
• C) Chevron-an American petroleum firm-acquires a British petroleum firm.
• D) General Motors-an American auto manufacturer-builds a plant in China to supply Buicks to the Chinese market.

---

Definitions:

Other Income

Income derived from activities that are not part of a company’s primary business operations.

Operating Activity

Operating activity involves the primary functions of a business that relate to its provision of goods and services to the market.

Expenses

Assets used up or services consumed in the process of generating revenues.

Retail Business

A business that sells goods or services directly to consumers for personal or household use.