Trade analysis involving multinational enterprises DIFFERS from our conventional trade analysis in that multinational enterprise analysis emphasizes

Question

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Multinational enterprise analysis emphasizes the international movement of factor inputs (such as labor, capital, and technology) rather than finished goods. This is because multinational enterprises often source inputs from different countries to take advantage of cost savings or other benefits. Conventional trade analysis, on the other hand, focuses on the trade of finished goods between countries.

Trade Analysis Involving Multinational Enterprises DIFFERS from Our Conventional Trade