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Invest in a us factory and production

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The list of foreign companies manufacturing cars in the US is impressive. It includes; Honda, Toyota, Nissan, Fuji (Subaru), Volkswagen, Hyundai, Kia, BMW, Daimler (Mercedes), and Volvo. Each represents FDI in the US by that foreign company. One of the theories that attempts to explain why FDI occurs is called Market Imperfections Theory, and it is based upon two possible imperfections, Trade Barriers and/or Specialized Knowledge.

How did TRADE BARRIERS cause many of those foreign auto manufacturers to invest in a US factory and production?

Reference no: EM132267235

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