_____ suggests that FDI,unrestricted by government intervention,will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods or services.

Question

Quizplus · Accepted Answer

The free-market view suggests that FDI, unrestricted by government intervention, will allow countries to specialize in the production of certain goods or services by tapping into their absolute or comparative advantages. This means that countries can focus on producing goods or services in which they have a competitive advantage, thereby increasing their efficiency and productivity. The free-market view holds that government intervention in FDI can hinder the ability of countries to tap into their advantages and benefit from international trade.

_____ Suggests That FDI,unrestricted by Government Intervention,will Enable Countries to Tap