Problem
1. Multinational enterprises may diversify their operations along vertical, horizontal, and conglomerate lines within the host and source countries. Distinguish among these diversification approaches.
2. What are the major foreign industries in which U.S. businesses have chosen to place direct investments? What are the major industries in the United States in which foreigners place direct investments?
3. Why is it that the rate of return on u.s. direct investments in the developing nations often exceeds the rate of return on its investments in industrial nations?