7. FDIs, according to their typology, can be divided into (1) horizontal and vertical; (2) inward and
Question:
7. FDI’s, according to their typology, can be divided into (1) horizontal and vertical;
(2) inward and outward; (3) portfolio investments and Greenfield. Classify the following cases according to the above parameters:
a. Huawei (a Chinese corporation) opens up a factory in Indonesia.
b. Samsung (a Korean chaebol) acquires a minority stake in Japanese stylus maker Wacom.
c. Geely (a Chinese multinational auto manufacturer) opens some new dealerships in the UK, after having acquired the Swedish Volvo.
d. Unilever (an Anglo-Dutch corporation and one of the world’s main producers of health-care and food products) builds a new production factory in Thailand to produce for regional markets in ASEAN.
Step by Step Answer:
International Finance Theory And Policy
ISBN: 9781292019550
10th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz