Question

What type of FDI occurs when a company is making an investment lock in a source...

What type of FDI occurs when a company is making an investment lock in a source if supply for a critical resource?

Members of the WTO aoutimatically give this status to other members is What? (NOT Reciprocity)

Homework Answers

Answer #1

Part 1) If a company is carrying out foreign direct investment in a source of supply for a critical resource then the company is making inward FDI.

Part 2) Members of the WTO automatically give most-favoured nation status to other members. Under this status, the member countries of the WTO are obligated to treat all the partner countries equally, and if a country decides to give a special favour to some country, then it has to extend the favour to all the other member countries of the WTO.

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