Question

A vertical transaction is one concluded by subordinates at the same level of the administrative structure...

A vertical transaction is one concluded by subordinates at the same level of the administrative structure without the approval of administrative superiors.
True
False

__________ is investment by investors in one country in companies in other countries by which the investors gain significant management control.

   

Change in planned socialist economies tends to occur slowly.
True
False

Homework Answers

Answer #1

1) False

A horizontal transaction is one concluded by subordinates at the same level of the administrative structure without the approval of administrative superiors. A vertical transaction is by an order from an administrative superior, that is binding to the subordiantes, who are obligated to fulfill it.

2) Foreign direct investment(FDI)

A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.

3) False:

Change in capitalist economies tends to occur slowly. Change occurs more rapidly in planned socialist economies.

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