For each of the following, 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 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. (Note that, at this time, Volkswagen does not produce any cars in the United States.)
For each of the following, 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 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. (Note that, at this time, Volkswagen does not produce any cars in the United States.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Kindly answer this question as soon as you can
For each of the following, 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 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. (Note that, at this time, Volkswagen does not produce any cars 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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