________________ has been the most common form of direct foreign investments in developing countries and in some mineral-rich developed countries.

Question

Quizplus · Accepted Answer

Backward vertical integration involves a company investing in and acquiring suppliers or distributors to ensure a steady supply of raw materials or components. This is the most common form of direct foreign investment in developing countries, where there may be limited local suppliers or infrastructure to support production. Additionally, this strategy is often used in mineral-rich developed countries, where companies will invest in mining operations to secure a consistent source of raw materials. Forward vertical integration (B) is when a company invests in and acquires downstream companies, such as distributors or retailers. Linear integration (C) is not a commonly used term in business strategy. Horizontal integration (D) is when a company invests in and acquires competitors in the same industry. While this strategy is common in developed countries, it is less common in developing countries due to limited competition in some markets.

________________ Has Been the Most Common Form of Direct Foreign