If Apple invests in iPhone dealerships in Asia but does not engage in distribution in the United States (Apple's host country),then Apple's Asian investment would be considered a(n) _____.

Question

Quizplus · Accepted Answer

Downstream vertical FDI involves investing in businesses involved in the distribution and sale of a company's products, which is what Apple would be doing by investing in iPhone dealerships in Asia. Since they are not engaging in distribution in their home country of the United States, it would not be considered horizontal FDI. It is also not upstream vertical FDI as this would involve investing in suppliers or manufacturers. It is not FPI as that refers to portfolio investment, which is typically passive and involves buying stocks or bonds for financial gain rather than actively investing in a business.

If Apple Invests in IPhone Dealerships in Asia but Does