Why Has FDI Grown More Rapidly Than World Trade

question 33

Multiple Choice

Why has FDI grown more rapidly than world trade?

• A)The decline in trade barriers has erased the fear of protectionist pressures.
• B)Executives of business firms see FDI as a way of circumventing future trade barriers.
• C)There has been a general shift toward radical and totalitarian political institutions.
• D)Privatization has made developing nations less attractive for multinational enterprises.
• E)There has been a general shift toward centrally planned command economies.

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Definitions:

Prevention

Activities or measures taken to avoid or minimize unwanted outcomes or accidents before they happen.

Reduction

The process of decreasing or lessening in size, quantity, or magnitude.

Atarimae Hinshitsu

A concept in Japanese quality management that suggests products should work as expected by users without any flaws or errors.

Japanese Concept

Refers to strategic philosophies or principles originating from Japan, often applied to business, management, and production, like Kaizen (continuous improvement).