FDI is seen by executives as a means of circumventing future trade barriers.

Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) involves establishing a business presence in a foreign country, which allows companies to benefit from local markets, labor, and resources. Executives may see FDI as a way to bypass potential future trade barriers because having a local presence can make it harder for governments to erect trade barriers that would hurt their businesses. Furthermore, by establishing operations in multiple countries, companies can spread their risks and diversify their revenue streams, making them less vulnerable to trade disruptions.

FDI Is Seen by Executives as a Means of Circumventing