For each of the following, specify whether the foreign direct investment is horizontal or vertical; in addition,
Question:
a. McDonald’s (a U.S. multinational) opens up and operates new restaurants in Europe.
b. Total (a French oil multinational) buys ownership and exploration rights to oil fields in Cameroon.
c. Volkswagen (a German multinational auto producer) opens some new dealerships in the United States.
d. Nestlé (a Swiss multinational producer of foods and drinks) builds a new production factory in Bulgaria to produce Kit Kat chocolate bars. (Kit Kat bars are produced by Nestlé in 17 countries around the world.)
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Related Book For
International Economics Theory and Policy
ISBN: 978-0273754206
9th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
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