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c. Hypothesis: A Canada based maple syrup company opens its new distribution office in Mexico and...

c. Hypothesis: A Canada based maple syrup company opens its new distribution office in Mexico and signs partnerships with other sugar manufacturing units & packaging units there. Identify the type of FDI?

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This is an example of vertical Foreign Direct Investment (FDI). This is because the Canada based maple syrup company has invested to purchase new distribution office in Mexico, which is s forward supply chain integration strategy and also has signed partnerships with other sugar manufacturing units & packaging units there, which is a backward supply chain integration strategy. Hence the company is involved into vertical FDI since it has strengthened it's supply chain network by investing in forward and backward supply chain integration abroad.

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