A key form of international trade for the MNC is:
A) Foreign Direct Investment
B) Relocation
C) Greenfield sites
D) Merger

Question

Quizplus · Accepted Answer

Foreign Direct Investment (FDI) is when a company invests in and owns a business in a foreign country. This is an important form of international trade for MNCs as it allows them to establish a physical presence in a foreign market, access local resources and talent, and expand their global footprint. Relocation, greenfield sites, and mergers can also be forms of international trade, but they are not as key or common for MNCs as FDI.

A Key Form of International Trade for the MNC Is