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:

Authority System

A structured framework within an organization that defines levels of authority and responsibility, guiding decision-making processes and hierarchical relationships.

Path-Goal Leadership Theory

A theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates.

Participative Leadership

A leadership style characterized by involving employees in decision-making processes, fostering a sense of ownership and enhancing motivation.

Continuous Improvement

The constant search for new ways to improve work quality and performance.