Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects:
A) a slowdown in global economic activity.
B) the increasing share of the U.S. in the total FDI stock.
C) the decline in cross-border flows of foreign direct investment.
D) the increasing internationalization of business corporations.

Question

Quizplus · Accepted Answer

The increasing amount of foreign direct investment directed towards both developed and developing nations during the 1990s reflects the increasing internationalization of business corporations. This trend was driven by companies seeking to expand their global reach, take advantage of new markets, and achieve greater efficiency through economies of scale. It was also facilitated by advances in technology and transportation, which made it easier for companies to operate across national boundaries.

Throughout the 1990s, the Amount of Foreign Direct Investment Directed