Chapter 9 Flashcards
1
Q
vertical integration
A
MNE decides to establish foreign subsidiaries to produce intermediate goods or inputs that go into the production of a finished good.
2
Q
backward integration
A
Extraction and processing of raw materials. (mostly the case in vertical)
3
Q
forward integration
A
financial consumer market
4
Q
horizontal integration
A
parent company is producing a commodity in the source country sets up a subsidiary to produce an identical product in the host country.
5
Q
conglomerate integration
A
nonrelated markets
6
Q
foreign direct investment
A
Acquisition of a controlling interest in an overseas company or facility.
7
Q
transplants
A
US-based Japanese assembly facilities
