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Specify foreign direct investment is horizontal or vertical

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For each of the following, specify whether the foreign direct investment is horizontal or vertical; in addition, describe whether that investment represents an FDI in?ow or out?ow from the countries that are mentioned.

a. McDonald's (a U.S. multinational) opens up and operates new restaurants in Europe.

b. Total (a French oil multinational) buys ownership and exploration rights to oil ?elds in Cameroon.

c. Volkswagen (a German multinational auto producer) opens some new dealerships in the United States. (Note that, at this time, Volkswagen does not produce any cars in the United States.)

d. Nestlé (a Swiss multinational producer of foods and drinks) builds a new produc- tion factory in Bulgaria to produce Kit Kat chocolate bars. (Kit Kat bars are pro- duced by Nestlé in 17 countries around the world.)

Reference no: EM13868658

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