A classic example for trade barrier-motivated FDI is
A)Honda's investment in Ohio.
B)Bridgestone's investment in Japan.
C)NAFTA.
D)none of the options

Question

Quizplus · Accepted Answer

Honda's investment in Ohio can be considered as a classic example for trade barrier-motivated FDI as it was done to avoid the high tariffs on Japanese-made cars in the US market. By investing in Ohio, Honda was able to manufacture cars locally and avoid the tariffs imposed on imported cars. This was a strategic move to bypass the trade barriers and gain a competitive advantage in the US market.

A Classic Example for Trade Barrier-Motivated FDI Is