International trade is motivated by the quest for market opportunities in other countries,while foreign direct investment is motivated by the desire to exploit resources and capabilities in other countries.

Question

Quizplus · Accepted Answer

International trade and foreign direct investment can both be motivated by a variety of factors, including market opportunities and resource exploitation. While international trade may involve seeking out new markets, it can also be driven by the desire to access cheaper inputs or take advantage of economies of scale. Similarly, foreign direct investment can be motivated by the desire to tap into new markets, as well as to access resources or capabilities that may be lacking in the investor's home country. Therefore, the statement that international trade is motivated solely by market opportunities and foreign direct investment solely by resource exploitation is false.

International Trade Is Motivated by the Quest for Market Opportunities