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 above

Question

Quizplus · Accepted Answer

Honda's investment in Ohio is a classic example of trade barrier-motivated FDI because the United States had imposed import tariffs on Japanese cars to protect their domestic car industry. By investing in a plant in Ohio, Honda was able to avoid these trade barriers and produce cars locally, which allowed them to compete better with domestic car manufacturers.

A Classic Example for Trade Barrier-Motivated FDI Is