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A strategy that involves a supplier entering the industry that it supplies inputs to is referred to as:

   

forward horizontal integration.
   

backward vertical integration.
   

horizontal diversification.
   

backward horizontal integration.
   

forward vertical integration.

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Question 8

An international trade agreement results in trade diversion occurs when

it results in switching of imports from a low-cost source to a high-cost source.

it results in switching of imports from a high-cost source to a low-cost source.

it results in switching of imports from a developed country to a developing country.

it results in switching of exports to a country that is too far away.

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Question 9

An investment by a firm in a previous stage of its value chain in a foreign country is called:

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Horizontal FDI.

Common cause exports.

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If you were a decision maker LG electronics would you have recommended vertical integration??? Defend your response


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