Which of the following statements about foreign direct investment are true?

Question

Quizplus · Accepted Answer

All the statements are true regarding foreign direct investment. A) describes the nature of investments between developed economies as often being horizontal, meaning they produce the same type of goods or services in both countries. B) explains that TNCs are more likely to engage in horizontal production when transport costs and trade barriers are high, and scale economies at the plant level are low. C) states that vertical investment is motivated by differences in factor costs, such as labor or materials, across countries.

Which of the Following Statements About Foreign Direct Investment Are