Explain whether the following statement is true or false. There is no mark for stating true or false; the mark is awarded for the explanation and the illustration only.

1. Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia, and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of acquisition

2. Suppose that a steel manufacturer headquartered in Japan sets up a subsidiary in Canada to produce steel. This practice is referred to as a vertical integration