_____ investments run the risk of being taken over by the host-country government because they are export-oriented and governments like a business that helps it to generate foreign capital.

Question

Quizplus · Accepted Answer

Vertical investments refer to investments in industries that support the production and export of a specific product. The government of the host country is likely to value these investments because they help to generate foreign capital. However, horizontal and conglomerate investments may not receive the same level of government support as they may not be as closely tied to the country's economic goals. Lateral investments are not a recognized category of investment.

_____ Investments Run the Risk of Being Taken Over by the Host-Country