(Answered) 1 for each cases a and b specify whether the foreign direct

Economics

1. For each cases a) and b), specify whether the foreign direct investment is horizontal or vertical; in addition, describe whether that investment represents an FDI inflow or outflow from the countries that are mentioned.

a) McDonald's (a US 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 opens some new dealerships in the United States (note that VW doesn't produce any cars in the US)

d) Nestlé builds a new production factory in Bulgaria to produce Kit Kat chocolate bars (Kit Kat bars are produced by Nestlé in 17 different countries)

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M92054265
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question supply and demand a process of coordinationwhat

Question: Supply and Demand, A Process of Coordination What would have happened if there had been no laws against price gouging and the price of gasoline immediately after Sandy had hit $50 per gallon? You may certainly ...

Question go to the internet and find a news article

Question: Go to the internet and find a news article published within the last three months that discusses macroeconomic effects of exchange rates, summarize key points and post in the Discussions area. Reflection - the ...

Question draw the supply and demand diagram for reserves

Question: Draw the supply and demand diagram for reserves with the curves intersecting on the downward sloping part of the demand curve - diagram A. Draw a second graph with the intersection taking place on the horizonta ...

Question - the space below shows the budget constraint

Question - The space below shows the budget constraint between food (F) and non-food consumption (X). This household has $800/month to spend on the two goods, the price of food = $4/unit and PX = 1. Label both axes and b ...

Question - the statutes of the recently established

Question - The statutes of the recently established European Central Bank (ECB) state that its primary objective is to maintain price stability. How does this charter differ from that of the Fed? What significance does i ...

Question franchise arrangements involve a number of highly

Question: Franchise arrangements involve a number of highly specific investments on the parts of both the parent company (e.g., McDonald's or Hilton Hotels) and the franchisee (the owner of a particular McDonald's or Hil ...

Question according to the definition a perfectly

Question: According to the definition, a perfectly competitive firm cannot affect the market price by any changing only its own output. Producer No. 27 in problem 2 decides to experiment by producing only 8 units. a. Wha ...

Question mandy has an income of 800 in period 1 and will

Question: Mandy has an income of $800 in period 1 and will have an income of $500 in period 2. Her utility function is U(c 1 , c 2 ) = c 0.80 c 0.20 , where c 1 is her consumption in period 1 and c 2 is her consumptio ...

Question - suppose the demand curve for a product is given

Question - Suppose the demand curve for a product is given by Q = 19 - 1P + 2Ps Where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.40. Suppose P = 0.60. W ...

Question the united states of americas national minimum

Question: The United States of America's national minimum wage is currently at $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert