Question

FDI vertical integration is backwardMultiple Choicewhen FDI involves an industry abroad that produces inputs for MNCs.when FDI involves an industry abroad that sells the MNC's outputs.none of the optionswhen FDI involves an industry abroad that produces inputs for MNCs, as well as when FDI involves an industry abroad that sells the MNC's outputs.

Answer 1

FDI vertical integration is backward when FDI involves an industry abroad that produces inputs for MNCs.

Answer: Option A

Explanation:

Backward FDI is purchasing "upstream" enterprises inside worldwide vertical integration. "Backward" refers to the area of the business in the generation chain. "Backward" or "upstream" signifies those pieces of the generation chain managing supplies and crude materials.

A company that experiences vertical integration obtains a company that works in the creation procedure of a similar industry. A portion of the reasons why organizations decide to coordinate vertically incorporate reinforcing their store network, diminishing generation costs, catching upstream or downstream benefits, or getting to new appropriation channels. To do this, one company procures another that is either previously or after it in the store network process.