Harton,a car manufacturer based in UK,only assembles cars and does not manufacture components in the UK.But in France,Harton enters into components manufacturing through FDI.Harton's investment in France would be an example of a(n) _____.

Question

Quizplus · Accepted Answer

Upstream vertical FDIs involve investing in industries that provide inputs or components for a company's core production processes rather than investing in a competitor or a distributor. Therefore, Harton's investment in components manufacturing in France is an example of upstream vertical FDI, as it is investing in an industry that supplies components to its core production process.

Harton,a Car Manufacturer Based in UK,only Assembles Cars and Does