Which is growing at a faster rate,foreign direct investment by MNCs or international trade?
A)FDI by MNCs
B)International trade
C)Since they are linked,they grow at the same rate.
D)none of the options

Question

Quizplus · Accepted Answer

Foreign direct investment by multinational corporations has been growing at a faster rate than international trade. This is because companies are setting up subsidiaries in foreign countries to gain access to local markets and take advantage of lower labor and production costs. Additionally, FDI has become more important, as countries have reduced tariffs and other barriers to trade, making it easier for companies to operate across borders. The growth in FDI has also been aided by advances in technology and transportation, which have made it easier for companies to manage operations across different locations.

Which Is Growing at a Faster Rate,foreign Direct Investment by MNCs