_______ occurs when the MNE enters a foreign country to produce intermediate goods that are intended for use as inputs in its home country (or in other subsidiaries) production process to market its homemade products overseas, or to produce final outputs in a host country using its home-supplied intermediate goods or materials.
A) Vertical FDI
B) Horizontal FDI
C) Backward FDI
D) Horizontal Integration

Question

Quizplus · Accepted Answer

Vertical FDI occurs when a multinational enterprise enters a foreign country to produce intermediate goods that are intended for use as inputs in its home country or in other subsidiaries' production process to market homemade products overseas or to produce final outputs in a host country using its home-supplied intermediate goods or materials.

_______ Occurs When the MNE Enters a Foreign Country to Produce