A true statement about horizontal investments is that:
A. they are rated as high risk because foreign governments see them as providing fewer benefits to the country and greater benefits to a multinational company than other investments.
B. they are unlikely to be takeover targets because these investments typically are made with an eye toward satisfying the host country's market demands.
C. they run the risk of being taken over by the government because they are export-oriented, and governments like a business that helps them generate foreign capital.
D. they are high-risk investments in which goods or services produced are dissimilar to those produced at home.
Answer: B
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